Con Michalakis Joins Funds SA as CIO | Chief Investment Officer

Con Michalakis is joining as CIO the $46 billion Australian public sector investment manager Funds S.A., which manages investment portfolios on behalf of the state of South Australia’s public sector superannuation funds and public authorities.

Michalakis is currently the deputy CIO of Australian super fund Hostplus. He will join Funds S.A. in February 2025 and replace Matt Kempton, who has led the investment team for the last six months as acting CIO. Michalakis will report to Funds S.A. CEO John Piteo.

Michalakis has served as Hostplus deputy investment chief since March 2022, following the merger between Hostplus and Statewide Super. He was head of investments at Statewide Super for 13 years before that and, in that role, was a member of the 2021 CIO Power 100 list. At Statewide, he became known for his bold investing style—one that inevitably led to taking highly concentrated and contrarian stakes in coveted assets.

Before working at Statewide, Michalakis was director of marketing and client services for New York-based boutique Pzena Investment Management, tasked with looking after the firm’s products and services in Australia, New Zealand, Hong Kong and Singapore. He also served as head of institutional business for Merrill Lynch Investment Managers, based in Sydney.

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Michalakis also worked in London with Alliance Capital Management and was the first Australian practice leader of investment consulting for Watson Wyatt.

Piteo said he is delighted to have Michalakis join the Adelaide-based fund.

“Con is a highly experienced CIO with a proven track record in delivering strong, consistent investment returns over many years,” Piteo said in a statement. “He is greatly respected for his leadership, commercial acumen and building deep stakeholder relationships within the investment management and superannuation communities.”

Michalakis said he is looking forward to joining Funds SA.

“As a proud South Australian, I’m passionate about delivering exceptional investment outcomes for our clients,” he said in a statement.

Piteo added: “[Kempton] has made a superb contribution as acting chief investment officer of Funds SA over the last six months. His dedication in leading the investment team, building trust and respect with clients and driving an outcomes-focused culture during this time have been greatly appreciated.”

This article appeared in our sister publication, Financial Standard, which, like CIO, is owned by ISS STOXX.

Tags: Con Michalakis, Funds S.A., Hostplus, John Piteo, Statewide Super

The board of the Maryland State Retirement and Pension System approved a charter at its Tuesday board meeting that establishes a climate advisory panel to advise the board of trustees and the pension fund’s investment division on developing and achieving a long-term sustainable portfolio.

The fund seeks to hire at least three outside experts to this panel. The panelists should be experienced in climate science and climate economics and should have diverse backgrounds that include climate research, investment management, climate change policy and climate risk.

The charter for the establishment of the climate advisory panel was approved by the administrative committee of the board on December 4, a spokesperson for SRPS said. The charter then was submitted to the board, who approved it today.

“By establishing this advisory panel, we can leverage outside expertise and work collaboratively as we establish a path to a long-term sustainable portfolio consistent with our fiduciary duties,” said Maryland State Treasurer Dereck E. Davis in a statement.

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While pension funds in some states, such as Maryland and California, push forward with sustainability initiatives, other states are banning funds from considering environmental, social and governance factors in investments. In Indiana, BlackRock was terminated as a fixed-income manager for the Indiana Public Retirement System due to the firm’s ESG commitments. A newly passed bill in Ohio bans the state’s funds from considering ESG factors in investment decisions.

The Maryland SRPS is accepting expressions of interest from candidates to serve on the panel, according to the release. The SRPS is a signatory to several net-zero and sustainability initiatives, such as the Climate Action 100+ and the Ceres Investor Network.

Since 2019, SRPS investment staff has evaluated environmental, social and governance risks for its investments, as well as external manager policies for addressing such risks. The fund also began managing some assets internally, according to the fund’s 2022 ESG Risk Committee report. Previously, these functions were addressed by external managers.

“Creating this climate advisory council will ensure that Maryland’s pension system can be at the forefront of seizing opportunities to ensure we are generating excess returns for our beneficiaries,” said Brooke E. Lierman, Maryland’s comptroller, in a statement. Lierman sponsored legislation in 2022 that led to the establishment of the climate advisory panel.

“I am confident that if used correctly by our system, the expertise we will bring in through this new council will allow for innovative investments that make our system more profitable with less risk over the long term,” Lierman continued.

Per the state’s Climate Pollution Reduction Plan, established in December 2023, Maryland aims to achieve zero greenhouse gas emissions by 2045. The plan also calls for reducing statewide emissions by 60% from 2005 levels and achieving net-zero emissions from large buildings.

In June, Maryland Governor Wes Moore signed an executive order to advance the pollution reduction plan.

The Maryland SRPS system manages $66 billion in assets, as of January 31, and has 168,000 retirees and beneficiaries and 245,000 active and former members.