| Since July 1, 2020: | 2024Committed $200 million across four Private Equity funds: Committed $56 million to McCarthy Capital Fund VIII, $32 million to Constitutional Capital Partners Ironsides Partnership Fund VII, $56 million to One Rock Capital Partners Fund IV (pending successful contract negotiations) and $56 million to Trive Capital Fund V (pending successful contract negotiations). The commitments align with the goal of diversifying the private equity portfolio and seeking attractive returns in middle- and lower middle-markets. Committed $61 million across two Real Estate funds: Committed $30.5 million each to Carlyle Realty Partners Fund X and Kayne Anderson RE Partners Fund VII.Transition to Mitsubishi UFJ as Securities Lending Provider: In February, the Council hired Mitsubishi UFJ Trust and Banking Corporation to replace Northern Trust as the securities lending agent. This change offers a more favorable revenue split, increasing net revenue to the Council by an estimated $2.6 million per year, more favorable indemnification terms, and reduces risk as cash collateral is invested in a separate account with customizable investment guidelines.Initiated Request-For-Proposal (RFP) for General Consulting, Private Equity, and Real Estate: In June, the Council began soliciting proposals from investment consultants for its General Consulting, Private Equity, and Real Estate mandates. Currently, the Councils general consultant is Aon plc. In October, the Council hosted semi-finalist presentations for private equity and real estate. In December, several Council staff traveled to visit and evaluate finalist consultants. The RFP Committee plans to make a recommendation to the board in early 2025. Continuing Custodian Bank Transition: Council staff completed the custody bank transition to Northern Trust from State Street. Adoption of New Audit Committee Charter: The Council approved a revised Audit Committee Charter to strengthen governance practices and clarify the roles and responsibilities of the committee, ensuring better oversight and accountability.UBS Trumbull Property Fund Redemption Strategy: Delegated authority to staff to adjust quarterly redemption amounts from the UBS Trumbull Property Fund. The goal was to achieve full redemption quickly while taking advantage of discounts to reduce investment management fees.Policy Updates for Investment Pools: Approved updates to the Investment Policy Statements for the Operating Investment Pool, Health Care Endowment Fund and Nebraska Achieving a Better Life Experience (ABLE) to ensure that investment guidelines remain aligned with current objectives and market conditions.2023Retirement and Hiring of State Investment Officer (SIO): In December 2023, Ms. Ellen Hung, CFA replaced Mr. Michael Walden-Newman as SIO. Committed $114 million across two Private Equity funds: Committed $57 million each to New Mountain Partners Fund VII and The Jordan Company Resolute Fund VI. Committed $64 million to one Real Estate fund: Committed $64 million to Oaktree Real Estate Opportunities Fund IX, aiming to capitalize on value-add real estate opportunities and diversify the real estate investment portfolio.Initiated Request-For-Proposal (RFP) for Custodian Bank: In January, the Council initiated an RFP process with the assistance of its investment consultant, Aon. This included discovery interviews with investment staff, data gathering from State Street Bank (the Councils existing custodian bank) and RFP creation. In April, Aon sent the RFP to the top four custodian banks in the global marketplace, three of which submitted proposals. Throughout June and July, the Council hosted finalist presentations, followed-up with finalists, conducted reference calls, and negotiated best and final terms and prices, before recommending Northern Trust to the Council.Selected Northern Trust as Custodian Bank: In September, the Council appointed Northern Trust as the new custodian bank and securities lending agent, replacing State Street. This decision was made to leverage Northern Trust's comprehensive custody services, advanced technology, and expertise to improve operational efficiency.Proxy Voting Policy: Adopted a new Proxy Voting Policy and engaged Glass Lewis to manage proxy voting activities. This initiative aimed to ensure that voting decisions are aligned with the Council's fiduciary responsibilities and governance principles.Optimized U.S. Equity Portfolio: Hired Northern Trust Asset Management to manage 17.75% of the 24% portion of the U.S. Equity allocation mandate using a passive indexing strategy, resulting in an annual savings of 0.35bps in management fees. Approved Investment Recommendations for the NEST Direct, NEST Advisor, Bloomwell, and State Farm 529 Plans: Enhancements were recommended across all plans and included changes in investment funds as well as updates to the age-based portfolios. 2022Committed $126 million across two Real Estate funds: Committed $63 million each to Landmark RE Partners Fund IX and Almanac Realty Securities Fund IX.Committed 45 million and $50 million across two Private Equity funds: Committed 45 million to Bridgepoint Europe Fund VII and $50 million to HarbourVest Dover Street Fund XI. Updated Governance Policies: Amended the Governance Policy to require regular reviews of investment consultant and legal counsel contracts, strengthening oversight and ensuring alignment with best practices.Blank Sheet Review of Equity Portfolio: Performed a comprehensive review of the public equity asset class, resulting in new asset allocations and benchmarks. This initiative was undertaken to optimize the equity portfolio structure and improve long-term investment performance.Eliminate Active U.S. Small Cap Mandate: As a result of the Blank Sheet Review of the Equity portfolio, the Council terminated Dimensional Fund Advisors (DFA), thereby eliminating its active U.S. small cap mandate. Allocation was re-purposed to the global equity portfolio, maintaining the current activepassive mix.Hire GQG for Global Equity Portfolio: The Council terminated MFS Institutional Advisors and hired GQG to be a manager for the Global Equity portfolio, upon recommendation by the Councils consultantHired NexBank as Provider of Bank Savings Option in the Enable Savings PlanRevised Private Equity Policy: Updated the Private Equity Policy within the Investment Policy Statements to reflect new guidelines, improving investment processes and aligning with industry standards.Conducted Asset-Liability Study for OSERS Portfolio: Performed an Asset-Liability Study for the OSERS portfolio to align the retirement plans' risk-taking with their liabilities. 2021Committed $120 million across three Private Equity funds: Committed $50 million to Genstar Capital Partners X, $20 million to Constitution Capital Ironsides Co-Investment Fund VI, and $50 million to New Enterprise Associates Fund 18. Committed $10 million to one Real Estate fund: Committed $10 million of the Omaha School Employees Retirement Plan to Kayne Anderson Real Estate Partners Fund VI. Approved a full redemption of the JP Morgan Strategic Property Fund with reinvestment of the proceeds into the Clarion Lion Properties Fund. An additional $15 million investment in the PGIM PRISA Fund was also approved: This decision helped move the Core Real Estate Portfolio for the Omaha School Employees Retirement System more in line with the other State pension plans.Blank Sheet Review of Fixed Income Portfolio: Completed a blank sheet review of the fixed income portfolio and adopted a new structure combining core fixed income with multi-asset credit strategies. This change aimed to enhance diversification, increase flexibility, and improve risk-adjusted returns.Implementation of new Investment Options for Defined Contribution and Deferred Compensation Plan participants: Beginning January 2021, new investment offerings for the State and County Defined Contribution and Deferred Compensation Plan were available for participants, including the addition of target-date funds. Target-date funds provide participants with low-cost, diversified investment options that adjust the asset allocation over time.Approved Ascensus as Enable Savings Plan Provider: Selected Ascensus as the new service provider for the Enable Savings Plan, resulting in reduced program management fees and improved services for individuals with disabilities saving for disability-related expenses.Eliminated Commission Recapture Program: Terminated the Commission Recapture Policy, streamlining operations since the program was no longer in use.Conducted Asset-Liability Study: Performed an Asset-Liability Study to align the retirement plans' risk-taking with their liabilities. The Council conducts a study every three to five years. The most recent study prior to this date was conducted in 2016.2020Committed $200 million across three Private Equity funds: Committed $50 million each to The Jordan Company Fund V, Francisco Partners Fund VI, McCarthy Capital Fund VII, and New Mountain Capital Fund VI.Committed $150 million across five Real Estate Funds: Committed $56 million to Oaktree Capital Real Estate Opportunities Fund VIII, $40 million to Kayne Anderson Real Estate Partners Fund VI, $54 million to Torchlight Investors Debt Opportunity Fund VIIReinvest Full Redemption Proceeds from UBS Trumbull Property Fund into Morgan Stanley Prime Property FundUpdated Investment Policy Statements: Revised the IPS for the Operating Investment Pool, Heath Care Endowment, Aeronautics Trust Fund, Ag Development Fund, General Endowment Funds, State and County Retirement Systems Defined Contribution and State Deferred Compensation Plan (DCDCP), Nebraska Educational Savings Plan Trust (NEST), and the State and County Equal Retirement Benefit Funds.State Farm 529 Savings Plan: Approved Union Bank & Trust as the new program manager for the State Farm 529 Savings Plan, replacing First National Bank. Appointed True Link as Program Manager for Enable Savings Plan: Selected True Link as the new Program Manager to enhance program services and support for individuals saving for disability-related expenses.2019Committed $150 million across three Private Equity funds: Committed $50 million each to Wynnchurch Capital Fund V, New Enterprise Associates Fund 17, and HarbourVest Partners Dover Street Fund X. Committed $40 million to one Real Estate fund: Committed $40 million to Rockwood Capital Real Estate Partners Fund XI. Modernized Investment Options for Defined Contribution Plans: Finalized updates to the investment options offered within the State and County Defined Contribution Plans and the Deferred Compensation Plan. Collaborated with the Legislature's Retirement Systems Committee to enable contemporary best practices, ensuring participants have access to improved and diversified investment choices.Initiated Fixed Income Portfolio Review: Launched a comprehensive blank sheet review of the fixed income portfolios to assess their role, structure, and potential enhancements. This initiative aimed to adapt to changing market conditions and interest rate environments, ensuring the portfolios remain resilient for the future. Progressed Alignment of OSERS Portfolio: Continued efforts to align the Omaha School Employees Retirement System (OSERS) investment portfolio with the asset allocation established for other plans. This ongoing process seeks to unify investment strategies and improve performance across all education employee retirement assets.Hire Hamilton Lane to Manage OSERSs Private Equity portfolio: As part of the transition of assets from OSERSs to the Council, the Council engaged Hamilton Lane to assume management of a portion of the private equity assets in the Omaha School Employees Retirement System. Updated Ethics and Conflicts of Interest Policy: Amended the Council's Governance Policies to improve clarity and strengthen guidelines regarding ethical conduct and conflict of interest, ensuring adherence to best governance practices.Selected Union Bank & Trust as Program Manager: Approved Union Bank & Trust as the new program manager for the Nebraska Educational Savings Plans. This decision was intended to improve investment options, reduce fees, and enhance services for plan participants.Approved Investment Options in the TD Ameritade 529 College Savings Plan: Several enhancements were made to differentiate the plan while also lowering overall fees. 2018Committed $190 million and 40 million across five Private Equity funds: Committed $50 million each to Genstar Capital Fund IX, Green Equity Investors Fund VII, The Jordan Company Fund IV; $40 million to McCarthy Capital Fund VI; and 40 million to Bridgepoint Europe Fund VI.Committed $140 million across three Real Estate Funds: Committed $60 million to Clarion Partners Lion Properties Fund and $40 million each to Torchlight Investors Debt Opportunity Fund VI and Almanac Realty Securities Fund VIII . Reinvest full redemption proceeds of Barings Core Property Fund into Clarion Partners Lion Properties FundAdopted Updated Investment Policies: Completed a year-long comprehensive review of investment policies for all investment pools. The Council approved updated policies to improve clarity, reflect the Council's investment philosophy, and ensure compliance with changes in state law.Blank Sheet Review of Private Credit Asset Class: Initiated research and discussions in collaboration with investment consultant on incorporating private credit into the retirement and endowment portfolios. After thorough evaluation, the Council decided to include this consideration in the upcoming fixed income portfolio review in 2019 to ensure a holistic approach.Blank Sheet Review of Investment Options for Defined Contribution and Deferred Compensation Plans: Undertook a comprehensive review of the investment options offered to participants. Sought legislative changes to update the statutory list of investment options to align with current best practices.Continued Transition of OSERS Assets: Progressed in aligning the investment of Omaha School Employees Retirement System's assets with the long-term target allocation identical to the States other pension plans. 2017Committed $150 million across three Private Equity funds: Committed $50 million each to Quantum Energy Partners Fund VII, Genstar Capital Fund VIII, and Francisco Partners Fund V.Blank Sheet Review of Public Equity portfolio: In November, the Council finalized and approved a new equity portfolio structure for the retirement plans. This was the result of a multi-year blank sheet review process that evaluated the necessity, style, weighting, and management of each asset class to enhance portfolio performance. As a result of the review, the Council decided to hire Dodge & Cox and terminate one manager for the public equity portfolio. Assumed Management of OSERS Assets: Successfully transitioned the investment management of the Omaha School Employees Retirement System assets to the Council on January 1, 2017. Welcomed the OSERS director as an ex-officio member of the Council.Updated Investment Policies: Continued the process of reviewing and updating investment policies to enhance clarity and align with legislative changes. The Council approved significant policy revisions to better reflect its investment philosophy and governance standards.Extend Investment Management Agreement (IMA) with the University of Nebraska and NU Foundation: The Council extended the IMA regarding the University Trust Fund with NU and the NU Foundation. Renewal of Investment Consulting Contract with Aon Hewitt: After a Request-for-Proposal process for evaluating Investment Consulting services, the Council decided to continue its relationship with Aon Hewitt as investment consultant. Launched Award-Winning Council Website: Introduced a new, user-friendly website that provided easier access to investment information, policies, and meeting materials. The website received an international award for its user interface and overall design.2016Committed $20 million to one Private Equity fund: Committed $20 million to Constitution Capital Partners Ironsides Partnership Fund IV.Committed $40 million to one Real Estate fund: Committed $40 million to Landmark Real Estate Partners Fund VIII. Approved New Global Equity Portfolio: In May, the Council approved an improved $2 billion global equity portfolio after a thorough blank sheet review. This initiative reassessed the role, style, weight, and management of the asset class to optimize returns and align with investment objectives.Initiated Review of Public Equity Portfolio: Began examining the $6 billion domestic and international equity portfolios using the blank sheet approach. Engaged with over 20 investment firms to explore strengths, weaknesses, and potential enhancements, setting the stage for future portfolio improvements. As part of this process, the Council elected to hire Arrowstreet Capital and Wellington Management and dismiss two managers for the global equity portfolio. In collaboration with the investment consultant, the Council also modified the recommended manager target allocations in accordance with these changes. Prepared for OSERS Asset Transition: Collaborated with the Omaha School Employees Retirement System to develop a transition plan for transferring asset management responsibilities to the Council effective July 1, 2016. This preparation ensured a smooth transfer effective January 1, 2017.Conducted Asset-Liability Study: Performed an Asset-Liability Study to align the retirement plans' risk-taking with their liabilities. The Council conducts a study every three to five years. Focused on Fiduciary Responsibility: Emphasized the importance of fiduciary duties during the annual summer retreat. Council members and the State Investment Officer engaged in sessions to deepen their understanding of legal obligations and best practices in managing the State's assets.Reviewed Fixed Income Investments: Held discussions with fixed income managers to understand the changing bond market landscape. This knowledge-sharing aimed to inform future strategies and adapt to evolving economic conditions.Professional Development CFA Program: As part of the effort to provide professional development, one investment staff member completed Level 3 of the CFA program and became a CFA Charterholder. Updated Investment Policy Statements: The Council approved the new Private Equity, Real Estate, Securities Litigation, and Operating Investment Pool (OIP) policies. The Council also approved a new Investment Policy Statement for the OSERS portfolio, which it was set to assume management over in 2017. |