The Public Employees’ Retirement System of Mississippi (PERS) is the largest public retirement system in the state, providing defined benefit pension coverage to state employees, public school employees, and local government workers. With approximately $32 billion in assets under management, Mississippi PERS is a significant institutional investor and allocator to both public and private markets.
Investment Strategy
Mississippi PERS maintains a broadly diversified portfolio designed to achieve its actuarial assumed rate of return over the long term. The asset allocation includes public equity, fixed income, real estate, private equity, and other alternatives. The Board of Trustees establishes investment policy and strategic asset allocation targets, guided by periodic asset-liability studies and input from external investment consultants.
The public equity portfolio spans domestic and international markets, with allocations managed through both active and passive strategies. Fixed income includes investment-grade bonds, government securities, and credit instruments that provide portfolio stability and income generation. Mississippi PERS has progressively expanded its alternatives allocation to enhance diversification and pursue higher risk-adjusted returns.
The system’s investment philosophy emphasizes long-term value creation, prudent risk management, and cost-effective portfolio implementation. The internal investment team works alongside external managers to execute the portfolio strategy.
Private Markets Approach
Mississippi PERS invests in private equity through commitments to limited partnership funds. The private equity program includes buyout, growth equity, and venture capital strategies, with diversification across fund size, geography, and vintage year. The system has built relationships with established general partners and evaluates new managers on a selective basis.
Real estate investments form a meaningful component of the alternatives portfolio, with exposure through commingled funds and separate accounts across core, value-add, and opportunistic strategies. The system also maintains allocations to real assets including infrastructure.
Commitment pacing for private capital investments is managed to maintain target exposure levels while ensuring adequate diversification. Fund managers seeking allocations from Mississippi PERS should be prepared for a comprehensive due diligence process that includes evaluation of investment strategy, organizational stability, performance track record, and fee structure. The Board of Trustees approves all significant new commitments following recommendations from internal staff and external consultants.
Frequently Asked Questions
What is Mississippi PERS's approach to private equity allocations?
Mississippi PERS invests in private equity through limited partnership commitments across buyout, venture capital, and growth equity strategies. The system builds diversified exposure across vintage years and geographies, working with both established and selectively with newer general partners.
How large is the Mississippi PERS investment portfolio?
Mississippi PERS manages approximately $32 billion in total assets, making it the largest public retirement system in the state. The fund serves over 300,000 active members, retirees, and beneficiaries across state and local government.
What governance structure oversees Mississippi PERS investments?
The PERS Board of Trustees, composed of ten members including gubernatorial appointees and elected representatives, sets investment policy. The board is supported by an internal investment team and external consultants who manage portfolio implementation and manager selection.
