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People Moves Roundup

SEB welcomes back a former employee, Callan makes a new ESG position, and more.

By Chris Butera

PASA Appoints David Pharo as Board Director

PASA announced the appointment of Aon’s David Pharo as board director. Pharo fills the space on the board created by Margaret Snowdon, who moved to the newly created non-executive role of president in January.

“David’s insight on what is required to deliver high-quality administration—and the potential challenges—from both the trustee and administrator perspective will go a long way in helping us further support our members and develop new resources,” said Kim Gubler, PASA chair.

Pharo has 30 years’ experience in the pensions industry and is currently client relationship manager at Aon, where he has held a range of roles over the past 22 years

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“The administration landscape has evolved hugely in recent years and, since its inception, I for one have continually felt the value of PASA’s guidance and resources during times of change,” Pharo said.

Javiera Ragnartz Named CEO of SEB Investment Management

SEB has appointed Javiera Ragnartz its new CEO of SEB Investment Management AB and head of division investment management.

She most recently worked as head of asset management at pension company AMF.

Prior to this, she held positions at Riksbanken and headed the fund management company at Handelsbanken. She has also held various management positions at SEB.

“Javiera Ragnartz has broad and deep asset management competence and I am happy to greet her welcome back to SEB,” said SEB’s President and CEO Johan Torgeby. “Her task is to strengthen SEB’s fund management offering and continue to develop sustainable investment products.”

SEB Investment Management AB develops and manages a wide range of investment funds for corporate, institutional, and private clients. SEB’s total assets under management were $197.9 billion as of  December 31, 2018.

Ragnartz will assume her position at SEB during the summer of 2019.

XPS Pensions Group Announces New Senior Hire

XPS Pensions Group (XPS) announced the appointment of Robert Evans as a principal. Evans joins from Mercer, where he was providing strategic advice to trustees.

Robert joined XPS on Feb. 4 and will be based in the London office.

 “Pension schemes are going through a huge volume of change and need the right support, expertise, and advice,” said Paul Cuff, CEO at XPS Pensions Group.

“My breadth of experience and exposure to schemes, including some of the largest in the UK, across a wide-range of sectors means I can help trustees resolve the concerns and the challenges many are facing,” said Evans.

Callan Creates ESG Practice Leader Role

Callan, has promoted Anna West to the role of senior vice president, ESG practice leader, effective Feb. 1, 2019. She will report to the firm’s head of Fund Sponsor Consulting,Millie Viqueira, and continue to be based in the firm’s Denver office. Her previous title was senior vice president, co-manager of the Published Research Group.

 “Anna has been instrumental in leading Callan’s efforts in the area of ESG investing for some time now,” said Callan President James Callahan, CFA. “We are looking forward to having Anna expand on these efforts to help us proactively address the emerging educational needs and interests of our clients and prospective clients.”

West will collaborate with Callan’s fund sponsor consultants to provide education and perspective on current ESG trends, issues, and considerations to clients as well as to the broader investment community.

“Some of our clients and their beneficiaries are interested in ESG investing and want to understand their options as they consider applying an ESG framework to their investment portfolios,” said Viqueira. “We are creating this role to support our clients and provide them with guidance, thought leadership, and thoughtful, applicable research. Given her depth of knowledge and experience in this area, Anna is the perfect person to lead these efforts.”

West joined Callan in 2006 and has been dedicated to research and education in roles with the Callan Institute and Published Research Group. She is also a member of Callan’s diverse and emerging manager committee and is a shareholder of the firm.

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Home > News > Risk > Global Equity Performance Disrupts New Jersey’s 29-Month Positive Return Streak
Risk

Global Equity Performance Disrupts New Jersey’s 29-Month Positive Return Streak

Investment Council also reviews private equity and real assets pacing plans through 2025.
By Elijah Owens

Poor performance in domestic and international equities markets in the last quarter of 2018 put a dent in the New Jersey Investment Council’s positive return streak, interrupting the $71 billion institutional investor’s positive overall monthly year-to-date returns since July 2016.

The council has a $32.9 billion allocation to US equity, non-US developed markets equity, and emerging markets equity, which generated -8.06%, -13.76%, and -15.30%, respectively, as of December 31, 2018. The total fund generated year-to-date, and one-, three-, and five-year annualized returns of -1.95%, 4.16%, 6.47%, and 5.41%, respectively.

Just before the markets spiked, the council executed a $1 billion US equity sell program in late September, lowering its exposure to the asset class from about 32% to 28%. Subsequently, in the midst of the market turmoil, the council took advantage of the relatively low prices, “which were trading 15% below their all-time highs reached in late September” and executed a $500 million US equity purchase program at the very end of the year, according to a report.

The council’s top equity holdings include investments in Microsoft (4.04% of total portfolio), Amazon (3.73%), Alphabet (3.10%), Vanguard Total Stock Market ET (2.48%), and JPMorgan Chase & Co. (2.02%).

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Pacing plans

The council’s investment consultant, TorreyCove Capital Partners, also submitted recommended “Base Case” pacing plans to maintain the portfolio’s exposure to private equity and debt, and private real assets, to approximately 10.25% and 2.50%, respectively.

TorreyCove recommended the council commit about $600 million in 2019 and $1.2 billion to $1.4 billion annually from 2020 through 2025 to private equity and debt to gradually reduce the current 11.86% allocation to 10.25%.

“Private equity tends to exhibit higher performance during weak economic cycles, making continued commitments accretive to overall performance across the various stages of the economic cycle,” the TorreyCove report said.

For the investor’s real assets portfolio, the consultant recommended the council commit $250 million in 2019, and $250 million to $300 million annually in 2020 through 2025 to maintain the current 2.78% allocation close to the 2.50% target.

The council also submitted the below redemptions to funds in its Risk Mitigation Strategy and Global Diversified Credit portfolios, calculating to about $885 million. The investments were the Lynx Common (Bermuda) Ltd, Scopia PX, Woodley Park NJ, and GSO Credit Partners. Media representatives of the council did not respond to questions regarding the redemptions by press time.

 

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