HARRISBURG, PA — The Pennsylvania Public School Employees’ Retirement System (PSERS) Board of Trustees has implemented new measures to enhance investment transparency, approved significant investments across multiple asset classes, and adopted its annual financial stress test. These developments underscore the board’s commitment to responsible governance and informed decision-making for the benefit of PSERS’ members.
During its meeting on Friday, the board passed a resolution adopting the Institutional Limited Partners Association’s (ILPA) quarterly reporting standards for private markets assets. The ILPA standards include updated templates for fee and expense filings, as well as fund performance tracking, aimed at improving transparency in recordkeeping. PSERS investment staff were instrumental in collaborating with other stakeholders to refine these standards. Additionally, trustees approved an Investment Due Diligence Policy, granting electronic access to detailed investment data used by staff to oversee PSERS’ public and private assets.
“The new ILPA reporting standards and due diligence policy reflect PSERS’ ongoing commitment to transparency and responsible governance,” remarked Pennsylvania Treasurer Stacy Garrity, who chairs the PSERS Investment Committee. “I’m thrilled that the board and staff are working together to ensure we have the best data available to make prudent investment decisions on behalf of PSERS’ members.”
The board also ratified a Board Inquiry Policy, which formalizes the process for trustees to request detailed information about the system’s finances and operations. “This policy further strengthens internal transparency between trustees and the staff,” said State Rep. Matt Bradford, chair of the Governance and Administration Committee. “It sets expectations and provides a clear process for trustees to access materials and for agency staff to respond to such requests.”
The meeting also included approval of six new investments, reflecting a dynamic approach to managing the system’s $75 billion portfolio. These include $500 million for fixed income with NISA Investment Advisors, LLC; $200 million for private infrastructure with I Squared Global Infrastructure Fund IV, L.P.; $150 million for private credit with I Squared Global Infrastructure Credit Fund II, L.P.; $133 million for private equity with Stellex Capital Partners III, L.P.; $100 million for private equity with K6 Private Investors, L.P.; and €75 million for private real estate through Realterm European Logistics Fund II SCSp.
Additionally, PSERS adopted its 2024 Stress Test Report, required under Act 128 of 2020. The report assesses the system’s financial resilience under various economic and demographic scenarios and will be submitted to the Governor, the General Assembly, and the Independent Fiscal Office for review.
The board also received an update on the pending sale of a $935 million portfolio of private equity funds in the secondary market, expected to conclude by the end of the month.
These steps underscore the board’s focus on transparency, fiscal responsibility, and strategic investment to optimize outcomes for the Commonwealth’s public school employees.
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