Boston Private Wealth Names New CIO | Chief Investment Officer

Shannon Saccocia

Boston Private, a provider of wealth management, trust, and private banking services, has promoted Shannon Saccocia to chief investment officer (CIO) of the firm’s wealth management unit Boston Private Wealth.

Saccocia most recently served as chief investment strategist, and takes over the CIO role from Tom Anderson, who has been serving as both CIO and chief operating officer (COO).

Saccocia will be responsible for setting the overall investment policy at Boston Private Wealth, as well as directing the firm’s investment strategy, research, portfolio management, trading, asset allocation, and investment risk management functions. Boston Private Wealth is responsible for both strategic and tactical asset allocation for the firm’s client portfolios.

Anderson, who initially took on COO duties at the beginning of 2018, will now shift from his dual role to focus solely on his COO responsibilities, such as trust and client advisory services, and business development initiatives for the entire firm. Anderson is also national head of trust and fiduciary services for the company.

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Saccocia and Anderson will report directly to Scott Dell’Orfano, president of Boston Private Wealth.

“We are very pleased to have both Tom and Shannon positively impact growth of the wealth team and continue to create value for our clients,” Dell’Orfano said in a release. “They are both capable leaders who have worked closely together for the past several years, and I look forward to having them focus on their new roles with the same cohesion and encouragement they’ve already shown.”

Prior to joining Boston Private Wealth, Saccocia was director of manager search and selection for Silver Bridge Advisors, which was acquired in 2013 by Banyan Partners, which in turn was bought by Boston Private Wealth in 2014. Prior to joining Silver Bridge, Saccocia worked at State Street Corp. and has a BA in economics and history from Brandeis University.

Prior to joining Boston Private Wealth in 2011, Anderson was head of global strategy and research for State Street Global Advisors’ ETF business. He also led the investment team for the charitable asset management group. He has a BA from Colgate University and an MBA from Boston College.

Tags: Boston Private Wealth, CIO, Shannon Saccocia, Tom Anderson

The legislative representative to the League of California Cities urged the CalPERS Investment Committee Monday to think “out of the box” in finding a way to exceed its 7% investment return projections, saying that cities won’t be able to pay their monthly contributions to the pension plan if returns are that low.

Dane Hutchings cited a CalPERS September 2017 report, which showed that 180 of the 449 cities and towns that participate in CalPERS had an individual funding ratio of between 60% and 70%. Sounding a warning alarm, Hutchings said a significant number of those communities could fall between the 50% and 60% funded when new CalPERS data come out in August.

The 50% level of funding is considered the beginning of a death spiral for a pension plan. Once the level of funding hits that low, it unclear if it is possible for the plan to be financially viable again.

The CalPERS report found that the bulk of communities, 248, were in the 70% to 80% funding ratio. Twenty cities or towns achieved 80% funding or above. One community was listed as currently in the 50% to 60% funding ratio. The specific cities and towns were not mentioned in the CalPERS report.

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“Cities want to make it clear that our foundation is rocky at best,” Hutchings said. “It’s crunch time, and quite frankly, we simply cannot stand another market slowdown or substandard returns.”

CalPERS is in the midst of a three-year plan to lower yearly expected investments to 7% from 7.5% because of diminished return expectations. However, as returns expectations drop, CalPERS’s unfunded liability increases, therefore it must increase contributions from employers whose employees are in the pension plan, meaning the state, cities, towns, special districts, and school systems that make up CalPERS must pay more.

Overall, CalPERS is only 64% funded, but the largest pension plan in the US sets contributions for each of its member agencies, each with its own funding ratio, such as the 449 cities and towns.

Hutchings told CIO in a separate interview that many cities and towns will be in dire financial condition because of increased contributions to CalPERS. In some cases, contributions by cities and towns are increasing by 20% or more over the next few years.,

“Bankruptcy is a real threat,” Hutchings said.

CalPERS officials did not respond to Hutchings, who spoke during a portion of the meeting in which public comment is allowed.

In January, the league released a report that showed that by 2024, California cities anticipate that they will spend an average of 15.8% of their general fund budgets on pensions. That number is up from an average of 8.3% currently, the report said.

CalPERS is set to lower the rate of return to 7% by July 1, 2019, but its consultants and investment staff say even that number is unrealistic over the next decade. They estimate a 6.2% annualized rate of return over the next 10 years. They say the 7% rate of return is realistic long-term because return expectations will increase over the next 10 years.

Tags: CalPERS, CalPERS Investment Committee, League of California Cities, Pension