Dallas Police & Fire Pension to Hire First CIO

The $3.5 billion pension plan will begin recruiting mid to late April.

The Dallas Police and Fire Pension System (DPFP) will begin recruiting for its inaugural CIO next month.

The newly created position at the $3.5 billion pension fund will be responsible for driving the investment strategy, but not administrative details, according to a DPFP spokesperson. Currently, the administrator acts as the fund’s CEO, overseeing administration, operations, and investments.

The Dallas, Texas-based fund will begin the official CIO search in mid to late April with an executive recruiter. The DPFP board of trustees is to decide on the salary and the recruitment timeframe in the next couple of months and work with the recruiter with a joint list of qualifications for the position.

“The board decided last October that hiring a CIO with a specialized expertise would help bolster DPFP’s investments and assets with a single focus,” the spokesperson told CIO.

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The Dallas pension plan also hired a new executive director. Kelly Gottschalk, the former deputy city manager of Tucson, Arizona, will act as the administrator to the fund and lead a team of 35.

As the executive director, Gottschalk will be responsible for leading the search for a CIO, according to the job posting. She will also be working closely with him or her on reviewing the asset allocation and executing policies and strategies “to ensure the system’s ongoing financial health.”

Gottschalk will be paid a base salary of $270,000 with no bonus, and will begin her position on or about April 15.

According to DPFP’s documents, the pension plan is currently 75.6% funded and has generated a 9% return net of fees over the past 30 years. As of September 30, 2014, the fund returned 3.6%, 6.6%, and 6.5% over the 1-year, 3-year, and 5-year periods, respectively.

Related Content: Philadelphia Pension Plan Seeks a New CIO

Home > News > Manager Selection > Managers Exit as Public Pension Swells Internal Assets

Manager Selection March 17, 2015

Managers Exit as Public Pension Swells Internal Assets

The £4.4 billion pension for the city of Edinburgh is taking assets from two external managers.

The Lothian Pension Fund has brought a £300 million ($443 million) global equity mandate in-house as it continues to build its internal investment capabilities.

The transition was managed internally, a statement from the Scottish public pension said, switching £308 million from an Asian equity allocation—run by Invesco Perpetual and Baillie Gifford—to the global team.

“Trading took place across several time zones and market exposure risk was reduced by using futures contracts,” Lothian’s statement said. “The market conditions at the time were favourable and resulted in a much better outcome than expected in terms of market impact.”

The pension saved an estimated £200,000 in commission costs by managing the change in-house.

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Lothian’s in-house management already runs £1.8 billion in listed equities in-house, according to its 2013/14 financial report, alongside nearly £1 billion in fixed income, private equity, commodities, and real assets.

The pension is in the process of obtaining permission from the UK’s Financial Conduct Authority to allow its internal team to use derivatives, develop investment strategies, and collaborate with other pension funds. Two subsidiary companies were set up by the City of Edinburgh Council last month, the pension said.

Lothian caters for public employees in Edinburgh and has £4.4 billion in assets according to its most recent valuation. Despite assets growing 26% since March 2011 the pension’s deficit increased from £142 million to £417 million. The increased deficit was down to falling bond yields and increasing longevity, the pension said.

The Lothian Pension Fund has been nominated for a CIO European Innovation Award in the Public Fund Below €15 billion category.

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