Two pension funds from Fairfax County in Virginia invested in Morgan Creek fund focused on financing cryptocurrency and blockchain projects. The total investment amounted to $21 million.

Less than 1%

The Employees’ Retirement System (ERS) invested $10 million in Morgan Creek, and the Police Officers Retirement System (PORS) committed to an investment of $11 million. They invested in the Morgan Creek Blockchain Opportunities Fund, which is one of the funds managed by Morgan Creek. The volume of investments made by pension funds corresponds to 0.3% and 0.8% of their total assets, respectively. It does not exceed the level of 1% of their total assets under management.

“These investments were deliberately sized to be a small portion of each system’s assets, given that the blockchain technology industry is still in its early stages,” explains the Fairfax county administration website.

It clarifies that before investing in Morgan Creek, pension fund analysts spent a lot of time and effort on researching financial indicators, meetings with the Morgan Creek team, discussions about risks and potential of investments with representatives of the funds' boards, and they even turned to third-party investment consultants.

At least 85% of investments will be directed to technological projects related to blockchain, and just over 15% of funds may be invested in cryptocurrency.

“All investments involve risk and this investment is no different. However, as they would do with any investment, Fairfax’s investment team determined that the expected returns from this investment were in line with the level of risk incurred. This also played a big part in how much was invested,” wrote Jeff Weiler, executive director of the Fairfax County Retirement systems.

Morgan Creek has a total of $1.4 billion in assets under management.