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Following the CERS Investment Cost Efficiency Services RFP (finalists XTP Implementation Services, bFinance, Albourne America LLC), KPPA Investment Staff recommended the CERS Board authorize hiring Albourne America LLC to perform Validation of Fees and Expenses services, pending successful contract negotiations. Presented at the March 25, 2026 CERS Investment Committee special meeting for committee action; Board ratification required.

KRS Investment Committee voted to terminate Shenkman Capital as bank loan manager for the KERS and SPRS portfolios, replacing it with Oaktree Capital Management (specialty credit allocation). The negotiated Oaktree fee is over 10 bps lower than Shenkman's. Motion by Mr. Lane; passed unanimously.

KRS Investment Committee approved KPPA staff's and Wilshire's recommendation to hire Oaktree Capital Management to replace Shenkman Capital as the bank loan manager for the KERS and SPRS portfolios (specialty credit allocation, up to 25% to Oaktree, separate account), subject to contract negotiations. Motion by Mr. Lane, seconded by Mr. Adkins; passed unanimously on roll call. IC action is not binding and forwarded favorably to the full Board.

CERS Investment Committee adopted an Investment Policy Statement amendment adding Section E, a narrow expedited-disposition process for private equity fund extensions only when three conditions are met (no new funds requested; fees lower than current; CIO obtains written authorization from two of three leaders). Co-investments and continuation vehicles never qualify and require full Board approval. Motion by Mr. Cheatham; passed unanimously.

CERS Investment Committee adopted a neutralizing approach for benchmarking private equity, replacing the public-equity-plus-300-bps benchmark: actual time-weighted private equity performance serves as the benchmark where it rolls up to the total fund, while PE is evaluated using dollar-weighted IRR versus a dollar-weighted Public Market Equivalent (PME) reported quarterly. Motion by Mr. Cheatham, seconded by Mr. Fulkerson; passed unanimously (requires full Board approval).

CERS Investment Committee voted to terminate Shenkman Capital as the bank loan (specialty credit) manager for all CERS portfolios, replacing it with Oaktree Capital Management via in-kind asset transfers and cash, maintaining exposure throughout the transition (one-to-one replacement, target allocation 20%, range 16-24%). Motion by Mr. McGraw; passed unanimously.

CERS Investment Committee approved KPPA Investment Staff's and Wilshire's recommendation to hire Oaktree Capital Management to replace Shenkman Capital as manager of the bank loan mandate for all CERS portfolios within the specialty credit allocation (up to 20% of each portfolio, separate account, no change to overall asset-class exposure), subject to contract negotiations. Motion by Mr. McGraw, seconded by Mr. Cheatham; passed unanimously. IC action is not binding and must be ratified by the full Board.