When Member and Employer contributions come into FPPA, they don’t go straight out the door as a benefit payment. Instead, it begins a carefully governed journey designed to responsibly grow funds over time so retirement and survivor benefits can be paid with confidence. Contributions made today are invested and grown over many years, sometimes decades, before being paid out as a benefit to Members and beneficiaries in retirement.

The flow of a contribution dollar looks like this:

Contributions → Investments → Public & Private Markets → Gains or Losses → Benefit Payments

FPPA’s Investments Department is made up of three teams: the Public Markets team, Private Markets team, and the Portfolio team. Each plays a distinct role, but they work together toward a shared goal: helping ensure FPPA can deliver on its promises to Members and beneficiaries, both now and in the future.

Team Mission: Long-term Stability

FPPA’s investment approach and team mission is governed by its Investment Policy Statement, which clearly defines the purpose of investing at FPPA:

“In fulfillment of its fiduciary duty, FPPA is committed to the long-term financial stability of the Fund through maximizing risk-adjusted returns.”

In other words, the goal isn’t simply to chase the highest returns. It’s to balance return and risk in a way that upholds FPPA’s fiduciary duty and best supports FPPA’s pension obligations over time.

Investments 101

At a high level, FPPA invests across two main categories: Public Markets and Private Markets. These two investment types play different but complementary roles in FPPA’s overall portfolio.

Public markets include investments in liquid, exchange‑traded assets. According to Investopedia, an asset is “liquid” when it can be quickly transacted and turned into cash. Examples of liquid assets include marketable securities like stocks and bonds. Anyone can make trades in public exchanges like the New York Stock Exchange (NYSE).

Private markets include investments that aren’t traded on public exchanges, such as private equity, venture capital, private credit, real estate, and infrastructure. These investments tend to be more complex and less liquid, but they can offer higher returns and diversification benefits over the long term.

Together, public and private markets create a well-rounded investment approach. Public markets provide liquidity and stability, while private markets offer long-term growth opportunities and diversification—helping FPPA balance risk and return in support of its mission to serve members and beneficiaries.

FPPA Investment Teams

The Public Markets team manages the largest portion of FPPA’s portfolio. Rather than selecting individual investment assets, the team partners with specialized external managers around the world. Their role centers on identifying high-quality partners, conducting rigorous due diligence, and continuously monitoring performance and strategy over time. Public markets play a critical role in providing growth, diversification, and liquidity. The team works to balance these elements to align with FPPA’s long-term investment objectives.

Much like the Public Markets team, the Private Markets team does not select individual opportunities. Instead, they review hundreds of potential funds and co-investments, carefully narrowing them down to a select group that aligns with FPPA’s portfolio needs. Because these investments are typically less liquid and more complex, the team prioritizes thoughtful selection and ongoing monitoring to ensure they provide returns, diversify the portfolio, and support long-term financial stability.

The Portfolio team ensures everything works together cohesively across both public and private investments. They are responsible for asset allocation (how the portfolio is divided amongst different types of investments), liquidity management, and ongoing risk monitoring, and making sure the portfolio stays aligned with FPPA’s goals and obligations. On any given day, they are tracking cash needs, coordinating with internal teams and external partners, and rebalancing investments to maintain target allocations. By managing the flow of funds and monitoring risk exposure across the entire portfolio, the team helps ensure that FPPA can make benefit payments reliably while staying on track to achieve its long-term return objectives.

Due Diligence: A Forensic Approach

Whether evaluating a public or private market investment, FPPA’s Investments team acts much like a forensic journalist. Their work is highly investigative: digging into data, validating assumptions, and assessing risks across multiple dimensions before recommending any investment.

Key questions the team asks include:

• What market opportunities does this strategy present?
• How are returns generated?
• Do the risks make sense given FPPA’s liabilities and long-term objectives?

It’s not uncommon for the team to spend months, or even a year, analyzing an opportunity that never makes it into the portfolio. That discipline is intentional. Saying “no” is just as important as saying “yes.” In fact, FPPA actually declines the vast majority of investment opportunities we evaluate. In 2025, our staff evaluated 1,114 investment deals, but only accepted 3% of the opportunities we reviewed.

Once invested, managers are continuously monitored through reporting, meetings, performance analysis, and ongoing risk assessment.

Layers of Accountability

Investment decisions at FPPA are never made in isolation. Three distinct groups provide oversight:

• The FPPA Board of Directors establishes investment policies and objectives and sets the asset allocation.
• The Investment Committee, a subcommittee of the Board, assists with asset allocation, reviews portfolio construction, and monitors performance, risks, and opportunities on a quarterly basis.
• The Internal Investment Committee is made up of FPPA leadership from across the organization. This group meets every two weeks and votes on investment selections and terminations, approves consultants and service providers, and serves as an additional layer of governance.

This structure allows FPPA to maintain discipline and transparency while still making informed investment decisions on appropriate timelines.

In Their Own Words