Introducing the ACERA Directed Brokerage Program

The ACERA Board of Retirement has established an open Directed Brokerage (DB) program.  ACERA is a California public pension fund with assets of approximately $5 billion.

The primary goals of ACERA's DB program are to 1) seek "Best Execution" through third-party administration and outside consultant monitoring; 2) recapture 50% or more of commissions paid on a specific percentage of trades to correspondent brokers; 3) encourage local and emerging broker participation through an open correspondent network program; and 4) construct the percentage of trades subject to recapture to allow investment managers access to research.

The Board adopted a DB policy (Click Here to read policy) to minimize total transaction costs, while seeking "Best Execution" for all transactions, maximizing the value of services received, and providing for proper monitoring and oversight of the program.

To ensure compliance with ACERA's DB policy, Capital Institutional Services, Inc. (CAPIS) will serve as ACERA's DB program third-party administrator and Plexus Plan Sponsor Group, Inc. (Plexus) as ACERA's trading cost consultant.  CAPIS is responsible for implementation and administration.  Plexus is primarily responsible for continuous monitoring and trade analysis.

For additional information pertaining to ACERA's DB program, please contact Christopher Cole of CAPIS at ccole@capis.com, or the ACERA Investment Staff at allinvestments@acera.org.  For a list of brokers participating in ACERA's DB Program, Click Here.

- Last Modified: 07 / 31 / 2008