WASHINGTON - Enos T. Throop Jr. was hired as chief investment officer of the National Railroad Retirement Investment Trust, a new fund set up this year with $20 billion to invest.
Mr. Throop will start Aug. 1. Currently, he is director-investments overseeing the $7 billion United Mine Workers of America Healthy & Retirement Funds, Washington.
The UMWA funds will search for an executive recruiting firm to assist in finding a replacement for Mr. Throop, said Charles Slavin, executive director. Mr. Slavin hopes the UMWA funds can choose a recruiter by the end of July. John Adams, senior investment adviser, was named interim director of investments.
At the railroad trust, Mr. Throop will determine professional internal staffing needs to assist him in administering the fund, said John J. Salmon, counsel to the trust and partner with Dewey Ballantine LLP, a Washington-based law firm.
"The intent is to develop an in-house staff of investment professionals," said Mr. Throop. That could mean 15 to 20 people, he added. He said the search for staff likely will wait until he formally joins the railroad trust.
Starting from scratch
"I don't think I've ever heard of an organization starting from scratch with so much money," Mr. Throop said of the $20 billion railroad trust. "It is one of the unique things that intrigued me about the job. It is not a pre-existing organization with an opening to fill. This is an organization that needs to be created and developed. That is what got me interested in the position."
In fact, even the location of the organization was uncertain for a time. Trustees of the railroad trust now decided to locate the office in Washington and are seeking office space.
Mr. Throop said there is a potential the trust could develop some internal investment management capability to complement external asset management, but not at the outset.
The trust is now invested exclusively in Treasury securities. Mr. Throop could not say when the shift to other investments would begin.
The trust plans to search for an investment consultant. It retained Watson Wyatt Investment Consulting to conduct an asset-liability study, using its consultants in Washington, Atlanta and New York.
Mr. Throop has been with the UMWA funds for 13 years, the last five as head of investments.
Russell Reynolds Associates, New York, had assisted in the recruitment of CIO candidates.