PHOENIX Trustees at the $7 billion Arizona Public Safety Personnel Retirement System cut CIO Rob Browns baby in half at a three-day meeting in mid-April, giving tentative and contingent approval to a proposed index-plus master manager program while setting aside, at least temporarily, a proposal for an absolute-return portfolio.
The unusual situation pitted staff and the boards investment consultant, Ennis Knupp + Associates, at odds, with the consultant pulling the reins on a hard-charging push to take the 93% internally managed system into a cutting-edge program.
Mr. Brown and James Hacking, executive director, pressed for adoption of a complete portfolio revamp that Mr. Brown designed. The administrators argued that a new approach that will improve returns and turn around the 69% funded system is needed and needed soon.
(See P&Is earlier story Arizona fund considering huge revamp.)
Given where we are we cant afford to be too terribly conservative, Mr. Hacking said in an April 24 interview. Most of the systems assets are passively managed securities. We cant sit on $7 billion in assets and not have them fully invested.