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Opening Letter


PACIFIC PENSION & INVESTMENT INSTITUTE
ANNUAL REPORT 2016

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Opening Letter


PACIFIC PENSION & INVESTMENT INSTITUTE
ANNUAL REPORT 2016

Scroll down to read online or...

Download the PDF

 

March 9, 2017

 

Dear PPI Members and Friends:

Your support over the past year has been very strong and well appreciated.  We wish to express to our thanks for participating in our programs and being part of the PPI community in 2016.

In the execution of PPI’s Strategic Plan 2015-2017, we strengthened our programming for PPI’s third decade, as well as consolidating the PPI community of members, and our financial future. We are very confident now that PPI’s powerful perspective adds true value to the investment decisions of our members.

Programming for PPI’s Third Decade. The programming at PPI is the hallmark of this organization. In 2016, PPI’s leadership worked diligently to bring insights from a range of institutional investor leaders, government, and the NGO community—while maintaining interactive, peer-to-peer, education. We put a premium on program partnerships and creating new channels for members to provide recommendations for different types of topics, and we remain open to new ideas and initiatives.

Strengthening the PPI Community of Members. Throughout the year, we dedicated ourselves to growing PPI’s membership without compromising on quality. These efforts have borne fruit, as our numbers have continued to improve as well as the quality of participation in programs among our member representatives. We added 21 institutional members, bringing our total to 104 by the end of the year. We also moved toward greater parity between our principal membership categories, and have widened our geographic diversity.

Securing PPI’s Financial Future. PPI is on solid footing thanks to our membership strategy and well-attended roundtable programs. Membership dues currently provide approximately 80 percent of PPI’s annual operating budget, and we are actively working to diversify our revenue stream and build up our reserves as a buffer against unexpected events.

PPI’s Powerful Perspective. Our PPI community continues to be—by virtue of our impressive global membership—a powerful force in the global economy. The board of directors and management team have worked closely to best ensure we can all have new insights into investment opportunities, and the corresponding political, security, financial, and economic risks. We invite your continued support and active participation, both in-person at our signature programs and on-line via the PPI Community Site: the community is only as strong as each member’s input and perspective.

We would like to thank Theresa Whitmarsh for her excellent leadership of the board and team over the recent years as chair. We would also like to thank the staff of PPI for their significant insight, assistance, and professionalism over the last year, keeping PPI great.

Sincerely,

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Adrian Orr, Board Chair 

Lionel C. Johnson, President

 
 
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Programming for PPI’s Third Decade


Programming for PPI’s Third Decade

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Programming for PPI’s Third Decade


Programming for PPI’s Third Decade

 

PPI’s members expect serious, timely conversations with their peers and other experts at our flagship roundtables. Our 2016 programs delivered — blending political analysis with financial assessments, deep-dives into regional developments, and broad surveys on conditions in the global marketplace. We invited subject matter experts, well-known personalities, and PPI members to offer their thoughts and to lead interactive discussions on a diverse set of issues.

Though attendance at our programs remained at full capacity throughout 2016, we worked hard to keep the sessions conversational in nature to allow for the intimate exchange of ideas for which PPI is known. In addition, we upgraded the PPI App with features that facilitate direct connectivity among participants at our events and during the months between them.

Our dynamic global community also includes important partnerships and programs outside our core offerings. The relationships with the Asian Development Bank (ADB), Global Aging Institute (GAI), and other partners remain important to us. In 2016, we began to explore new and different options for the continuation of our programming specific to developing Asia in 2017 and 2018.

 

Our 2016 Program Lineup

Click the programs below for overviews and links to reports, agendas, and photo galleries.

February 24-26, 2016 Los Angeles, CA

February 24-26, 2016
Los Angeles, CA

July 27-29, 2016 Cambridge, MA

July 27-29, 2016
Cambridge, MA

October 23-25, 2016 Hong Kong

October 23-25, 2016
Hong Kong

October 26-28, 2016 Hong Kong & Shenzhen

October 26-28, 2016
Hong Kong & Shenzhen

More 2016 Programs

India's Latest Reforms and Initiatives to Promote Foreign Investment

June 2, 2016

PPI hosted in our San Francisco office on June 2, U.K. Sinha, chairman of the Securities and Exchange Board of India (SEBI), for a candid discussion with our members on the current macroeconomic and regulatory environment in India. His comments provided insight into India’s efforts to remove barriers to foreign investment and set the context for the broader discussion to come at the 2017 Asia programs in Mumbai and Delhi. The Insights report for this webinar is available here.

GAI-PPI Issue Brief:
Meeting Hong Kong's Retirement Challenge

September 27, 2016

Richard Jackson, president of the Global Aging Institute (GAI), discussed the findings of Meeting Hong Kong’s Retirement Challenge, the issue brief jointly published by GAI and PPI.  During his presentation, Dr. Jackson discussed the forces that are pushing pension reform to the top of the policy agenda, evaluates the strengths and weaknesses of the Mandatory Provident Fund (MPF), and explores strategies for improving the overall adequacy and sustainability of Hong Kong’s retirement system.

Infrastructure Working Group

October 25, 2016
Hong Kong

The inaugural meeting of the Infrastructure Working Group was held October 25 on the margins of the programs in Hong Kong. Joe Cherian, director of the Center for Asset Management Research, National University of Singapore, served as moderator. The working group brought together 28 participants, 15 of whom were PPI members, to discuss some of the barriers and challenges related to infrastructure investment globally. A summary report of the discussions is available here.

Strengthening Pension Systems in the Pacific

November 2-3
Suva, Fiji

We conducted, in partnership with the ADB and the Fiji National Provident Fund (FNPF), a program for the 14 member nations of the ADB’s Pacific region. The program was held November 2-3, with Jaoji Koroi, CEO of the FNPF, serving as chair. The opening keynote was given by Aiyaz Sayed-Khaiyum, attorney general and minister for Economy, Public Enterprises, Public Service, and Communications, Government of Fiji. There were 58 participants who attended the two days of programming.

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Strengthening the PPI Community of Members


Strengthening the PPI Community of Members

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Strengthening the PPI Community of Members


Strengthening the PPI Community of Members

 

PPI welcomed 21 new member organizations in 2016, and by year-end we had 104 high-caliber organizations on PPI's membership roster. The new Asset Owner and Allocator members in 2016 were: Alaska Permanent Fund, British Columbia Pension Corporation, Cbus, Development Bank of Japan, Fremont Group, Japan Bank for International Cooperation, Massachusetts Pension Reserves Investment Management Board, Minnesota State Board of Investment, PKA, Premji Invest, The City of New York Office of the Comptroller, The Investment Fund for Foundations, The Norinchukin Bank, and Universities Superannuation Scheme. The new Asset Manager and Advisor members were: Ascendent Capital Partners, Apollo Global Management, Barings, Bridgewater Associates, Carlyle Investment Management, Fidelity Institutional Asset Management, and IFC Asset Management Company.

PPI’s smart growth approach to membership recruitment and retention in 2016 emphasized the ability of an organization or individual to contribute and to actively participate in our programs, to share their insights, and to offer diverse points of view on relevant investment topics and market trends.

We also endeavored to strike a balance between asset owners and asset managers. We achieved roughly equal growth between these two membership categories since 2015, expect to achieve overall parity between them by the end of 2018, and reach our goal of no more than 120 PPI institutional members next year.

 

PPI's Membership Roster on December 31, 2016: (*new in 2016)

Asset Owners and Allocators

Pension Funds, Sovereign Wealth Funds, Endowments, and Foundations

*Alaska Permanent Fund
Alberta Investment Management Corporation
AustralianSuper
British Airways Pension Investment Management Ltd.
British Columbia Investment Management Corporation
*British Columbia Pension Corporation
California Public Employees’ Retirement System
California State Teachers’ Retirement System
Canada Pension Plan Investment Board
*Cbus
Citizen Investment Trust, Nepal
City and County of San Francisco Employees’ Retirement
     System
CN Investment Division
Colorado Public Employees’ Retirement Association
*Development Bank of Japan
Employees Provident Fund, Nepal
*Fremont Group
GIC Private Limited
Government Pension Fund, Thailand
*Japan Bank for International Cooperation
Kaiser Permanente
Los Angeles City Employees’ Retirement System
Los Angeles County Employees Retirement Association
Margaret A. Cargill Philanthropies
*Massachusetts Pension Reserves Investment
     Management Board
*Minnesota State Board of Investment
Municipal Employees’ Retirement System of Michigan
National Council for Social Security Fund, P.R. China
National Pension and Provident Fund, Bhutan
National Railroad Retirement Investment Trust
New York State Common Retirement Fund
New Zealand Super Fund
Ontario Teachers’ Pension Plan Board
Oregon State Treasury
PGGM
*PKA Ltd.
*Premji Invest
Public Employee Retirement System of Idaho
QIC Limited
Second Swedish National Pension Fund – AP2
South Dakota Investment Council
*The City of New York Office of the Comptroller
*The Investment Fund for Foundations
*The Norinchukin Bank
Third Swedish National Pension Fund – AP3
*Universities Superannuation Scheme
University of California Regents
University of Southern California Endowment
Washington State Investment Board
Williams College Investment Office

Asset Managers and Advisors

Asset Management Firms and Other Investment Experts

Aberdeen Asset Management
Actis
Affinity Equity Partners
AllianceBernstein
Angelo, Gordon & Co.
*Apollo Global Management
*Ascendent Capital Partners
Asia Alternatives Management
Asset Management One
Baring Private Equity Partners India
*Barings
*Bridgewater Associates
Campbell Lutyens & Co.
Capital Group
*Carlyle Investment Management
Cartica Management
CDH Investments
CLSA Limited
Corston-Smith Asset Management
Dimensional Fund Advisors
*Fidelity Institutional Asset Management
FountainVest Partners (Asia)
Global Environment Fund
Global Strategic Associates
Goldman Sachs Asia
Grove Street Advisors
Hamilton Lane Advisors
HarbourVest Partners
Hermes Investment Management
IDFC
*IFC Asset Management Company
Institutional Real Estate, Inc.
Jasper Ridge Partners
Kohlberg Kravis Roberts Asia
Macquarie Infrastructure and Real Assets
MBK Partners
Meridiam
Mitsubishi Corporation
Morgan Stanley
Nikko Asset Management
Olympus Capital Asia
Ortec Finance
Perella Weinberg Partners
Quantum Advisors/Primary Real Estate Advisors
Siguler Guff & Company
Sit Investment Associates, Inc.
Sumitomo Mitsui Trust Bank
Tata Group
The Abraaj Group
The TCW Group
TIAA
Tokio Marine Asset Management Co.
Unison Capital
Wellington Management Company


Friends of PPI

Oliver Bolitho
*Susan J. Carter
Howard Chao
Roy Doumani
*Varel Freeman
*Sandra Haas
Geoffrey A. Hirt
Howard L. Hull III
JETRO, New York
*Wayne Kozun
Arthur Mitchell
Ambassador Clark T. Randt
Kazuo Seki
Peter H. Sullivan
James Timmins
Yuelin T. Yang

Lifetime Members

Ronald E. Bornstein
Margaret Carpenter
Ambassador Chas W. Freeman Jr.
Ta-lin Hsu
Larry Hull
Takeshi Kadota
Doug Pearce
Shelley I. Smith
Ambassador Linda Tsao Yang

Securing PPI’s Financial Future


Securing PPI’s Financial Future

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Securing PPI’s Financial Future


Securing PPI’s Financial Future

 

PPI demonstrated sound fiscal management and accountability measures, as demonstrated by the audited financial statements completed as of December 31, 2016 by Good & Fowler, LLP. The following Statement of Activities reflects total Revenue and Support of $2,531,551, an increase of $217,536 or 9% from the prior year. Total Expenses were $2,436,073, an increase of $316,326 or 15% from the prior year. The total change in 2016 net assets is $95,478.

Our goal is to undergird PPI’s financial future through strong and diversified revenue flows and effective expense management. In 2016, membership dues, roundtable registration, and sponsorships by PPI members were our lead revenue sources. We gratefully acknowledge the support of our Asia Roundtable sponsors: Asia Alternatives; Campbell Lutyens & Co.; Capital Group; FountainVest Partners (Asia) Limited; Goldman Sachs Asset Management; IDFC; Macquarie Infrastructure and Real Assets; MBK Partners; Meridiam; Mitsubishi Corporation; Nikko Asset Management Co. Ltd; and Quantum. PPI also appreciates the contributions of our 2016 Asia Roundtable partners—the Hong Kong Monetary Authority and the Shenzhen Stock Exchange.

PPI's solid financial position in 2016 enabled us to make investments in programs, people, and member service technology, while also shoring up PPI reserves to weather unforeseen turbulence.

 

(Hover over the charts to view the percentages)

 

2016 Revenue Sources

2016 Expense Allocation


Statement of Activities

For the Year Ended December 31, 2016
With Comparative Totals (USD) for the Year Ended December 31, 2015

2016 2015
REVENUE
     Membership Dues 1,975,150 1,749,775
     Roundtable Registration 287,490 266,055
     Asian Development Bank Grant 40,505 60,758
     Executive Seminar Registration 57,523 88,857
     Investment Income 12,133 7,170
     Other Income - 100
Total Revenue 2,372,801 2,172,715
SUPPORT
     Sponsorships 158,750 141,300
Total Support 158,750 141,300
TOTAL REVENUE & SUPPORT 2,531,551 2,314,015
EXPENSES
     Program Services 1,922,817 1,628,190
     Support Services 513,256 491,557
Total Expenses 2,436,073 2,119,747
CHANGE IN NET ASSETS 95,478 194,268
NET ASSETS AT BEGINNING OF YEAR 1,877,487 1,683,219
NET ASSETS AT END OF YEAR $1,972,965 $1,877,487

The financial information presented is from the audited financial statements. Interested parties can obtain a complete copy of the audited financial statements by contacting our office.

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PPI’s Powerful Perspective


PPI’s Powerful Perspective

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PPI’s Powerful Perspective


PPI’s Powerful Perspective

 

We began 2016 in a low-return environment, but the situation became increasingly complex as elections in the United States, Europe, and Asia toppled paradigms and cast doubt on long-held assumptions and beliefs. Those unprecedented developments left in their wake disruption and a high degree of uncertainty. In response to these changing conditions, we adjusted the roundtable themes and refocused the conversations to meet the needs of the PPI Community.

PPI’s leaders—our global Board of Directors and Advisory Council, and the management team based in San Francisco—are dedicated to fostering the powerful perspective that is gained when PPI members gather to discuss and debate the most relevant and pressing issues for institutional investors. We recognize that the PPI membership represents a powerful force in the global economy, and we understand that it is our duty to support the work of our members who are assessing investment opportunities and risks every day.

In 2016, we were also fortunate to have worked with PPI Fellow Takashi Endo, who worked with the management team on the 2016 Summer Roundtable and Asia programs, and Bob Burlingame, an attorney with Pillsbury Winthrop Shaw Pittman who helped us to secure the trademarks and certificates for PPI’s name and logo. We are also enormously grateful our Advisory Council, to Jonathan Kaufman, co-founder and principal at Third Plateau, Dr. Martha Summerville, president, Summerville Consulting, and Gabe Ross, senior counsel, Global Policy Initiatives, for their many contributions to PPI’s programs and institutional development in 2016.

 

 

PPI Leadership Teams on December 31, 2016: (*new in 2016)

BOARD OF DIRECTORS

OFFICERS

Theresa J. WhitmarshChair
Executive Director
Washington State Investment Board

Wayne KozunVice Chair
Former
Senior Vice President, Public Equities
Ontario Teachers’ Pension Plan Board

Henry JonesSecretary
Vice President/Chair, Investment Committee
CalPERS Board of Administration

Bryan Thomson, Treasurer
Senior Vice President, Public Equities
British Columbia Investment Management Corporation


 

Oliver Bolitho
President
Old Peak Limited

Else Bos
Chief Executive Officer
PGGM

Jeb Burns
Chief Investment Officer
Municipal Employees’ Retirement System of Michigan

Susan J. Carter
Former President & CEO
Commonfund Capital, Inc.

Howard Chao
Private Investor
Doon Capital

Ajit Dayal
Founder and Director
Quantum Advisory Private Limited

Gordon J. Fyfe
CEO and CIO
British Columbia Investment Management Corporation

Takajiro Ishikawa
Senior Vice President Industrial Finance, Logistics & Development Group
Mitsubishi Corporation

Melissa J. Ma
Co-Founder and Managing Partner
Asia Alternatives Management

*Robert Maynard
Chief Investment Officer
Public Employee Retirement System of Idaho

Adrian Orr
Chief Executive Officer
New Zealand Super Fund

Sheila Patel
CEO, International
Goldman Sachs Asset Management

John Skjervem
Chief Investment Officer
Oregon State Treasury

Ambassador Paul W. Speltz
Chairman and CEO
Global Strategic Associates

Frank K. Tang
Chief Executive Officer & Managing Partner
FountainVest Partners

Leslie Teo
Chief Economist/Director
Economics & Investment Strategy
GIC Private Limited

*Conrad Yan
Partner
Campbell Lutyens & Co., Ltd.

_

Larry Hull, Founder & Chair Emeritus


ADVISORY COUNCIL

Doug Pearce, Chair

Teresa C. Barger

Christopher K. B. Brotchie

Roy Doumani

Larry Hull

Takeshi Kadota

Herb Meiberger

James R. Timmins

Ambassador Linda Tsao Yang

MANAGEMENT TEAM

Lionel C. Johnson
President

Kris Greenville
Vice President

Gwen Bough
Executive Assistant

Sabina Ong Gotuaco
Finance & Human Resources/Administration Director

*Piin Fen-Kok
Senior Program & Knowledge Director

Nicholas Sramek
Program & Knowledge Director

Evie Fong
Programs & Logistics Coordinator

Mark Mancao
Communications and Technology Director