SERS Board of Trustees approved a 12% reduction to illiquid investments
Harrisburg, PA - Pennsylvania Treasurer Joe Torsella today issued the following statement regarding the approval of SERS’ newest Investment Policy Statement, which increases transparency and liquidity of investments, while reducing management fees paid to external advisors:
“It is encouraging to see SERS take proactive steps that will have long-term positive impacts on the fund and its beneficiaries.
“I commend SERS for reducing their overall exposure to expensive, illiquid investments from the previous target of 38% to 26%. This reduction sets the fund up for greater success in the long run. In addition, SERS’ decision to increase its allocation to fixed income from 14.5% to 26% reduces risk to the fund—and in turn, beneficiaries and taxpayers. These decisions, which also reduce annual management fees by 8%, set the fund on a more prudent path for the future, and moves in the direction of the broad recommendations made by the Act 5 Commission.
“None of us has the luxury of predicting when the next economic downturn will occur. With this new policy, SERS is appropriately reducing the level of risk, especially in the event of an extended period of economic downturn, so it can keep its promises to beneficiaries—no matter what.
“The work is not finished. As a fiduciary, I will continue my efforts to work with SERS to improve the fund for long-term success. Yesterday’s vote sends a strong message to beneficiaries of SERS and taxpayers of Pennsylvania that progress is being made.”
Pennsylvania Treasurer, Joe Torsella