Podcast: Indexing Nevada PERS: Steve Edmundson’s $60 Billion Strategy
Guest: Steve Edmundson is the investment officer at the Public Employees' Retirement System of Nevada (NVPERS), overseeing over $60 billion in assets.
Recorded: 3/18/2024 | Run-Time: 48:01 | Listen on Apple or Spotify
Summary: As pension funds continue to hire more employees, pay more and more fees and build more complex portfolios, Steve is an outlier for his approach that emphasizes simplicity over complexity. He’s one of two investment professionals on staff and has indexed 100% of all publicly traded asset classes. I love it!
Steve talks about the culture that allows this model to work and shares some thoughts on the rise of private markets and the impact of higher interest rates.
The late Jack Bogle had a quote that applies well to Steve & Nevada PERS: “Don’t do something, just stand there!”
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Links from the Episode:
(1:43) - Welcome to our guest, Steve Edmundson
(3:46) - An overview of Nevada PERS $60b+ pension
(8:20) - Focusing on indexing and low fees
(15:53) - Framework for adding additional asset classes
(17:39) - Steve’s take on the rise in allocations to private equity and private real estate
(30:47) - Why the Nevada Model has been successful
(34:46) - How the higher interest rate environment impacts pension plans
(41:33) - Steve’s most controversial opinion
(42:31) - Steve’s most memorable investment
Learn more about Steve: LinkedIn