Sean Bill, CIO of Santa Clara Valley Transportation Authority, to Retire in March

Art by Robert Hunt

Sean Bill, who has served as chief investment officer of the Santa Clara Valley Transportation Authority for the past 10 years, will be stepping down from his position on March 31.

“I feel like it is a good time to repot myself and take on a new challenge,” Bill said in an email. “I will be joining Prime Meridian Capital Management, which is a Bay Area private credit fund.”

During Bill’s tenure as chairman and CIO of the Santa Clara Valley Transportation Authority’s Other Post Employment Benefit Trust, the fund has returned 10.40% net of fees versus its benchmark of 9.80% annualized.

While at VTA, Bill oversaw two funds, the pension and the retirees’ health plan. When he arrived, both funds primarily invested in three asset classes: equities, real estate, and fixed income. Bill felt there was room for improvement.

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“One of the things that I really wanted to do during my time there was to try to diversify the plans and hopefully improve the risk-adjusted returns,” Bill told CIO.

Bill added absolute return hedge funds, private credit, and created a dedicated sleeve to Treasurys.

“I really felt like it was important for us to start trimming back the fixed-income allocation and find higher coupon short-duration instruments that we could invest in,” he said.

Bill’s desire to diversify VTA’s portfolio also led it to become one of the first public pensions to have exposure to cryptocurrencies such as Bitcoin and Ethereum. And while Bill remains a believer that blockchain technology will continue to drive lucrative investment returns in the future, there is another asset class that he feels presents even more opportunity. “I think the best risk-adjusted returns that are available to an investor today are in private credit,” he said.

That’s one of the main reasons he was drawn to take up the position at Prime Meridian, an investment management firm that specializes in private credit.

Bill first met Prime Meridian’s founder, Don Davis, at a fintech conference back in 2014.

“To me, Prime Meridian in a super interesting spot because they are one of the original private credit funds, buying peer-to-peer loans that were originating on Prosper or LendingClub and various other platforms,” Bill said.

Bill added that he is also excited about the firm’s innovative approach to investing in specialty finance and alternative lending.

“I think this will be a great place,” he said. “I see this as my last job.”

Bill is also known for his recreational love of discussing big macroeconomic topics. He runs a blog at MacroCrunch.com, which analyzes macroeconomic trends. Paying close attention to macro trends has also helped him develop strategies for his investments. In an article for CIO Magazine last December, he also shared his tips for navigating the pandemic business cycle.

As for his blogging, Bill said that while he has taken a short break over the past few months, he plans on going back online soon.

“I just got super busy,” he said. “But I’m going to get it going again because I love to do the blog, it is a great way to maintain an ambient presence with my friends and colleagues.”

How CIO Sean Bill Is Successfully Revamping His Portfolio

Private Credit: Too Risky? Not for Asset Allocators

Tags: Bitcoin, Cryptocurrency, macroeconomics, Prime Meridian Capital Management, Private Credit, Public Pension, Santa Clara Valley Transportation Authority, Sean Bill

The Public Sector Pension Investment Board, one of Canada’s largest pension investment managers with C$204.5 billion (US$160.7 billion) in assets under management, has announced that President and CEO Neil Cunningham plans to retire March 31, 2023. The company said it has hired an executive search firm to find a successor.

Cunningham first joined Ottawa-based PSP Investments in 2004 to lead the firm’s real estate team, and then later oversaw the natural resources team as well. He was promoted to CEO and president in February 2018, and since then the asset value of the firm’s investments has grown by more than C$50 billion.

“This transition will happen at a time when PSP Investments will be well-positioned financially, with a very capable executive team in place to continue execution of PSP Investments’ strategy and business plan,” Cunningham said in a statement. “I have been fortunate to work with executives and investment professionals who are among the best globally.”

Cunningham has been credited with leading and implementing PSP’s workplace strategy, and for contributing to the company’s diversity awareness and inclusion initiatives. He also serves on the senior management committee, the management risk and investment committee, and the talent committee. Prior to joining PSP, Cunningham held various positions at Merrill Lynch, Brazos Advisors Canada, National Bank of Canada, and Coopers & Lybrand. He also served as chair of the board at Canadian retirement home provider Revera Inc.

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“I would like to recognize the immense contributions made by Neil Cunningham to PSP Investments,” Martin Glynn, chair of the PSP’s board, said in a statement. “PSP Investments’ strategy and growth, leading to strong financial performance from both an absolute and relative basis, is a testament to his leadership.”

Cunningham earned a bachelor of commerce degree with honors from Queen’s University and is a chartered accountant.

PSP Investments oversees a portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources, and credit investments. The firm, which was established in 1999, manages and invests amounts transferred to it from the government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police, and the Reserve Force.