DIVIDEX Management Selected To Manage
NCPERS’ Securities Fraud Recovery Services Pilot Program
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July 1, 2023 — For an institutional investor to fulfill its fiduciary duties in responding to securities fraud losses in its investment portfolios, it needs information and unbiased advice about whether to be active in domestic securities class actions or join potential foreign recovery cases. It also needs a system to seek to determine whether it received all funds due it from securities litigation class action recoveries.
To help its mid-sized and smaller public pension plan members address these fiduciary challenges, the National Conference on Public Employee Retirement Systems (NCPERS) has retained DIVIDEX Management LLC to establish and manage the NCPERS Securities Fraud Recovery Services.
“Making informed decisions as to when and how to take action to recover securities fraud losses is an increasingly challenging part of a public pension’s fiduciary duties,” said Hank Kim, NCPERS Executive Director. “Through our pilot project with DIVIDEX Management, we’re pleased to offer a new resource to help our smaller public pension plan members improve securities fraud recoveries and supplement their existing protocols for monitoring securities fraud payouts.”
About NCPERS Securities Fraud Recovery Services
Based on months of conversations and evaluations with a focus group composed of executive staff from multiple public pension funds, NCPERS Securities Fraud Recovery Services was established as a pilot project to provide consulting services to help NCPERS fund members make more informed decisions as to when and how to take action regarding opportunities to recover securities fraud losses, while minimizing in-house staff time spent in doing so.
The year-long pilot program begins July 1, 2023 and is open to the first 25 qualified public pension fund members that enroll. To be eligible, the pension fund must 1) be in good standing with NCPERS and 2) have $30 billion AUM or less; or have annual average securities litigation recoveries of less than $2.5 million. The base level of services is available to enrolled members at no cost, with optional services available for nominal fees. Sign up here to enroll.
Find answers to frequently asked questions here.
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