CT Treasurer Taps Mercer as Investment Consultant

According to a Nappier news release ,  t he New York-based consulting firm was chosen from among six companies that responded to a request for proposals issued by the treasurer’s office in January.

The news release said the naming of Mercer coincides with plans to change the CRPTF’s investment policy plan to:

• increase exposure to emerging and foreign-developed markets,
• create a liquidity fund; and
• commit up to 8% to a new alternative investment asset class for nontraditional and evolving strategies.

The new alternative investment asset class does not include real estate or private equity, which are already included within the CRPTF, the news release said. The changes stem from a recently completed study conducted in conjunction with the state’s independent Investment Advisory Council, the announcement said.

“With globalization becoming increasingly important to successful investment strategies, Mercer’s worldwide reach also brings added value to its proven track record and is expected to enhance Connecticut’s pension fund’s investment returns,” Nappier said in the announcement.

Nappier’s office said in the announcement that a search for a nontraditional investment consultant to help implement the new asset class was launched simultaneously with the consultant search. A decision on the preferred firm will be announced shortly.

The announcement said Mercer is expected to begin work with the state in October after a contract is worked out.

Mercer replaces Connecticut-based Rogerscasey, CRPTF’s primary consultant for more than ten years. The firm will continue to serve the treasury on a project-retainer basis.

Nappier also announced that she recently named Independent Fiduciary Services, Inc. to conduct an operational assessment of the Pension Fund Management Division, which oversees the day-to-day supervision of the pension and trust funds.