Bailey McCann, Opalesque New York - By unanimous vote today, the Florida state Senate passed a bill that will allow up to 20% of the state's investment portfolio to be allocated to alternative investments. The move doubles the allocation which currently sits at 10%. The investments are managed by the State Board of Administration which manages a variety of Florida's investments including the $120b Florida Retirement System.
The Florida Alternative Investment Association (FLAIA) issued a statement about the bill, noting that the organization has spent the past two years advocating on behalf of members on this specific issue. FLAIA raised the concern that the public pension fund is not properly positioned to perform well in volatile financial markets.
FLAIA will be advising state officials on the resulting portfolio allocation and best practices for manager selection. The measure will now to go Governor Scott who is expected to sign the legislation into law immediately.
The bill may have an impact on ongoing pension budget fights in the legislature. According to local press accounts, Circuit Court Judge Jackie Fulford ruled Tuesday that a new law requiring state employees hired before July 1, 2011, to contribute 3 percent to their retirement fund......................