Public Funds Summit East 2018

America’s Regatta Cup Networking Event (Shuttle Service Begins at 7:15 AM)

7:15 am – 8:30 – Shuttle Service begins
8:00 am – Breakfast & Registration
8:30 am – Departures for 12 Meter Racing Boats
8:45 am – Departures for Viewing Boat
11:00 am – Boats Return & Return Shuttle Service

Boat Sponsors include: TerraCap Management, LLC

Limited space available. Advanced registration required.

Exhibitor Setup

Conference Registration Desk Opens

Closed Door Pre-Conference Workshop and Luncheon (Investors ONLY)

Part 1: Private Markets – A Case for the Lower-Middle Market

Presented by:
Howard Searing, III, CFA, Director, Portfolio Manager, Private Markets, DuPont Capital Management 

Part 2: What Factors are Driving Factors

Presented by:
Robert Pari, Portfolio Manager, Structured Equities, DuPont Capital Management 
Andrew Smith, Associate Portfolio Manager and Senior Equity Analyst, DuPont Capital Management 

Welcoming Remarks

State of the US Retirement System: What are the challenges pensions are facing and what does the future look like?

• DB plans need to be protected. What can we do differently to insure that they will be available to the next generation of workers?
• Unfunded liabilities have grown despite strong markets for bonds and equities. Why?
• Do you know what your promise (liabilities) looks like?
• Should the ROA or a plan’s liabilities drive asset allocation?
• Should plans with stronger funded ratios get more or less aggressive?
  

Unique and Attractive China A-Shares Market for the Global Investors

Gold as a strategic tool to address the challenges pension funds face

•  Key challenges pension funds face and common strategies to solve them
• Gold’s investment attributes and how these can help pension plans achieve their objectives
• Common issues pension funds face when using gold as a strategic asset

Refreshment Break

Sponsored by:
William Blair & Company, LLC

Equity Investing Strategies and Their Role in Today’s Pension Portfolio

• Does it make sense to invest by geographies or globally?
• Equity markets continuously move through cycles, such as growth/value, large /small, etc. What style(s) do you see leading the way forward?
• Factors (smart beta) used to be sources of alpha and now they are betas, do they have a role in a diversified equity portfolio, and if so, who should be responsible for their implementation?
• Are there opportunities to use ETFs within a diversified institutional portfolio?
• Active versus Passive
• If plan sponsors are skittish about using active managers because of recent underperformance, why not use performance-based fees instead of paying a manager full freight w/o a promise of delivery?

Investment Officers’ Roundtable: A Conversation with Pension CEOs, CIOs and Executive Directors

This panel will consist of investment officers and executive directors from highly respected institutions. The panelists will discuss the investment strategies and industry sectors that they expect will drive their investments in the years to come, as well as a series of key issues facing plan sponsors in the current investment environment.

• Are you considering changes to your plan’s asset allocation?
• If yes, what is driving that decision?
• Highlight your most successful and least successful investment decision.
• Do you use your plan’s funded status to make asset allocation changes?
• At what percent of payroll does this plan become unsustainable?

Cocktail Reception

Sponsored by:
DuPont Capital Management

Breakfast in Exhibit Hall

Welcoming Remarks

Opportunities in the Fixed Income Marketplace for Pension Investments

• What is the role of traditional fixed income in a DB plan?
• Where are the opportunities in the next 24 months?
• Will we potentially face a liquidity crunch from markets such as HY, Preferreds, Converts,
  bank loans, CDOs, etc.
• Will interest rates rise in the US and abroad? If yes, how dramatically?
• Will investing in TIPS finally make sense?

Real Estate Markets and your Pension System: What should you be looking for?

• Where are we in the Real Estate Cycle
• Where can upside potential be found
• What are the biggest risks
• U.S. versus non-U.S.
• Technology and the commercial real estate landscape
• New administration effect on commercial real estate

Refreshment Break

Sponsored by:
Backstop Solutions Group, LLC

Investing in Private Debt and Direct Lending (or Opportunities in Credit Investing)

•  Investment opportunities across the credit spectrum – BDCs, CLOs, Private Credit Funds, Mezz Funds, Broader Strategies
• Trends in the credit market
  o Regulated Banks, Non-Regulated Arrangers, Direct Lenders
  o Credit quality – structures, covenants, “Adjusted” EBITDA
  o Supply and Demand
•  Risk Adjusted Returns for Credit vs PE, Mezz, Public Markets
•  Macro Outlook
  o The broader economy – Impact on credit
  o The Credit Cycle – Where are we now?
  o Expected impact from Tax Reform & Interest Deductibility
  o Fat-tailed world – What are the current worries?

Today’s Digital CIO is Using Technology to Break Down Silos

Pension Fund Asset Allocation

Networking Luncheon

Opportunities, Strategies, Risks & Rewards Investing in Real Assets

• Assets: How do real assets fit into a pension fund’s portfolio?
• Risks involved
• Infrastructure
• Oil and Gas investing
• Direct vs. indirect investments
• Impact of oil prices and outlook for the year to come

Private Equity and Venture Capital: How to Extract New Alpha

• There seems to be a lot of money chasing opportunities within private equity, how does this impact returns for these vintage years?
• Is bigger better or can you make money with smaller firms/asset bases?
• Do you need a robust IPO market to capture private equity returns?
• Are there opportunities in sectors outside of technology? If so, provide examples?
• Do fund of funds make sense anymore?

Investing in Niche Strategies and Emerging Managers

• Defining today’s niche strategies and how niche can become mainstream
• Investing early to build relationships for successor funds
• Finding scalable niche and emerging opportunities
• Seed and acceleration economics
• Underwriting newer firms, additional diligence steps: terms, team, track record, infrastructure

Portfolio Harmony: Balancing Your Asset Allocation and Portfolio Construction While Managing Risk to Maximize Investment Returns

• Risk? What Risk? Risk is more than volatility
• Net under the High Wire? Protecting portfolios against volatility
• No, Wait, I Can MAKE Trading? Investing in volatility
• Prognosis for markets, near and longer-term
• Targeted asset allocation strategies moving forward for pension plans
• Using technology to monitor your portfolio and manage risk
• What is the greatest risk for a DB pension plan?
• US equity and bond markets have enjoyed lengthy bull markets, are we at risk of these markets going against us?

Role of Treasurers in Pensions

Summer Social Networking Bash

Join us and unwind with fellow industry professionals for Live Music, Great Food, & Refreshments during our Networking Party
(Registered guests only)
(Shuttle Service begins at 6:00PM to Goat Island)

Featuring Live Music
Global Impact Award Presentation

Thank you to our Sponsors!

AEW Capital Management, L.P.
TerraCap Management, LLC

Breakfast in Exhibit Hall

Welcoming Remarks

Best Strategies for Proper Manager Selection

•  The importance of manager selection
•  Do you use the same approach for every asset class?
•  Due diligence and attribution
•  Risk – do you adjust depending on how well funded the plan?
•  Guaranteed strategy to winning Fantasy Football
•  Consideration of fees

Learning from Actuaries: Actuarial Science and your Pension Plan

• How do actuaries decide on whether return and inflation assumptions are reasonable?
• What horizon should be used for investment return forecasts when setting the return
  assumption? Short-term (0-5 yrs), mid-term (10-20 yrs) or long-term (30+ yrs)
• What is the difference between the geometric expected mean and the arithmetic
  expected mean? Which is more appropriate for annual actuarial valuations?
• Which comes first: Return assumption or asset allocation?
• What can actuaries bring to the table on enterprise risk management?
•  How will the new Actuarial Standard of Practice (No. 51) regarding risk disclosure affect
  public plan actuarial valuations?
•  How does the current low inflation forecasts affect our expected return and salary
  increase assumptions?
• Generational mortality vs. static mortality tables
• Withdrawal liability
• Entry Age Normal – As a funding method
• What is the Pension Objective?
• Is the ROA a calculated number based on the funded status?
• If the plan earns the ROA, will it be fully funded?
• Since Assets and liabilities both use the ROA as the projected growth rate wouldn’t
  projected contributions grow at the
•  ROA rate too?
•  Should projected benefits be reduced by contributions in calculating the Funded Ratio?
• If interest rates go UP as a trend… would that enhance the Funded Ratio?

The Role Consultants Play with Pension Funds and How They Make Decisions

• What level of involvement does your consultant have in shaping your investment program?
• Choosing the right consultant for your plan
• Consultant obligations during manager selection and what characteristics do consultants focus on?
• How can managers get to a consultant?
• Can trustees help get managers on the radar?
• How do they make decisions on new managers?
• What are the primary functions of the asset consultant?
• Should asset consultants focus on the liabilities to a greater extent?
• What metrics do you use to evaluate your consultant?
• Do you engage in a generalist/specialist model?
• Are all the specialists on the asset side of the equation?
• Have you ever thought to hire a liability-aware consultant to help drive investment structure and asset allocation decisions?
• How proactive is your consultant with regard to identifying new opportunities?

Practical Tools to Improve Governance, Fiduciary Responsibility & Avoid Conflicts

• Restrictions on food & drink and disclosure requirements
• Importance of process as a fiduciary
• Fundamental expectations for board meetings
• Importance of investment beliefs; facilitating board members to a shared set of beliefs
• Governance & Decision making “dashboards”: focus board on highest order tasks and decisions
• Risk Management approaches & frameworks
• Avoiding conflicts of interest (real & perceived): approaches?
• Board composition: “portfolio of viewpoints”, continuity vs. new perspectives
• Governance scorecards/benchmarking
• Freedom of Information
• Open Meetings statutes
• What is a Fiduciary and how do you monitor your board/committee?
• How often do you review the investment policy statement (IPS)?
• Do you regularly review your assets versus the plan’s liabilities (the promise)?
• Do you have a de-risking strategy in place?
• How do you monitor potential conflicts of interest?
• Education is paramount. How often do you provide educational opportunities for your board?

Conference Concludes