FLAIA Legislative Update on House Bill 1417 - The State Board of Administration Raises Cap on Alternative Investments
MIAMI, March 7, 2012 -- The Florida Senate approved the Ring/Oliva Bill today, which increases the Florida State Board of Administration’s cap on alternative investments from 10% to 20%. Specifically, the House Bill 1417 now goes to Governor Rick Scott for his approval and signature.
The Florida Senate approved without any debate a proposal that will double the amount of money the State Board of Administration, which manages Florida's $120 billion pension fund, can set aside for "alternative investments."
The Florida Alternative Investment Association (FLAIA) has spent the past two years advocating on behalf of members on this specific issue-submitting multiple advocacy letters, meeting with the State of Florida's Cabinet and the State Board of Administration's staff on numerous occasions, participating in round tables, and writing white papers advocating to various stakeholders and leaders. FLAIA raised the concern that the public pension fund is not properly positioned to perform well in volatile financial markets.
The Florida Alternative Investment Association will begin reviewing and analyzing the portfolio allocation and begin discussing the next steps to ensure that the manager selection process follows best financial management practices.
Florida Alternative Investment Association (FLAIA)
The Florida Alternative Investment Association (FLAIA) is a not-for-profit (501c6) organization created to establish Florida as an internationally leading center for Alternative Investment management. Our mission spans a broad-range of areas including Community Building, Education, Branding, Capital and Business Attraction, and Policy Optimization. Our ultimate goal is to articulate the State of Florida's impressive strengths as a center for Alternative Investment management and systematically strengthen the state's Alternative Investment "eco-system" over time.