Ash Williams, former executive director and chief investment officer of the Florida State Board of Administration, discusses how hedge funds and alternative investments help benefit the Florida retirement system, protect capital in down markets, and support local communities.
Key Takeaways:
- The Florida retirement system helps support public employees at the state, county, and local levels.
- “Hedge funds and alternatives are an important role in preparing them for a life after work where they can retain their independence and dignity.”
- Hedge funds deliver $19.8 billion in retirement security for millions of retirees that have given their lives to public service in Florida.
Transcript:
[00.05-00.16}: My name is Ash Williams. For 19 years, I was Executive Director and Chief Investment Officer for the Florida State Board of Administration, one of the world’s largest pension funds.
[00.16-00.29]: The Florida retirement system covers public employees at the state, county and city levels. All kinds of people who have given their lives to public service in Florida – over one million of them in aggregate.
[00.29-00.39]: The pension system plays a very important role in preparing them for a life after work where they can retain their independence and dignity.
[00.39-00.52]: Hedge funds and alternatives are an important part of our ability to provide returns with prudent diversification over long periods of time to meet our obligation to the taxpayer and the beneficiary.
[00.52-01.03]: I think for people to understand not just hedge funds but alternative investments broadly, they need to understand how they add value and what that value is.
[01.03-01.11]: I think that they have been very supportive of returns, they’ve been very helpful in protecting capital in down markets.
[01.11-01.22]: Again, if I go back to the last thirteen years I was at the state board, I believe that the value we added above and beyond the benchmark over that period was about $14 billion.
[01.22-01.33]: That’s $14 billion that went to pay pension contributions and benefits that didn’t come out of the pocket of the taxpayer, and it didn’t come out of pocket of the public employee.
[01.33-01.42]: These are people who live in Florida. So that money ends up in Florida communities, and that’s what matters.
