PensionsSeptember 20, 2023

New Jersey Police, Fire Pension Seeks CIO, Plans to ‘Dramatically’ Expand Staff

The $31 billion pension fund has also issued an RFP for a custodial services provider.

Reported by Michael Katz

The $31 billion Police and Firemen’s Retirement System of New Jersey is looking for a permanent CIO to lead the investment staff for the multiemployer defined benefit plan, which has more than 80,000 members at 579 different companies.

According to a job posting from executive search firm CBIZ EFL Associates, the CIO will be responsible for helping the pension fund’s board of trustees fulfill its fiduciary duties and manage its assets. In addition to leading the investment staff, the CIO will be expected to monitor investment performance, suggest asset allocation and investment policy adjustments, and ensure compliance with all board policies and applicable laws and regulations.

Working with the investment staff and general investment consultant, the CIO will be responsible for all investment reporting and external investment manager evaluation and selection. The CIO will also be required to work collaboratively with the New Jersey state treasurer and the director of the New Jersey Division of Investments.

The CIO “must be a strong investment strategist” and will be responsible for, along with the external investment consultants, providing recommendations to the executive director, the board of trustees and the board’s investment committee.

Some other responsibilities include:

Providing investment performance and other key metrics regularly to the executive director and board;
Developing and sharing recommended asset allocation and investment policy changes;
Ensuring accurate and prompt distribution of funds to selected external investment managers;
Leading, mentoring and managing the investment staff, finance staff and compliance staff; and
Effectively communicating the overall investment strategy to diverse audiences.

The pension fund’s asset allocation is 24% U.S. large-cap equity, 10% private equity, 9.5% non-U.S. developed index, 8% private debt, 7% U.S. Treasurys, 6% emerging markets equity, 6% global multi-sector fixed income, 5% U.S. corporate credit, 5% PFRS Mortgage, 4% U.S. small/mid cap equity, 4% real estate value add, 3% real estate core, 3% infrastructure, 2% cash, 2% non-U.S. developed small cap index and 1.5% emerging markets small cap equity.

Including the CIO and a deputy CIO, the posting stated the pension fund’s investment staff is expected to “increase dramatically” as it seeks to grow to approximately 36 members from the current 23.

The pension fund also issued a request for proposals for a custodial services provider, saying the fund is “seeking a cost-effective custodial bank to assist with safekeeping and accounting for the fund’s assets.” Other responsibilities include settling securities transactions, receiving dividends and interest, providing foreign exchange services, paying fund expenses, reporting failed trades, reporting cash transactions, monitoring corporate actions at portfolio companies and tracing loaned securities.

Proposals are due by September 18.