New Jersey Division of Investment, Trenton, should hire a global custodian to handle some of its investment-related services, according to a transition committee appointed by Gov. Chris Christie.
The committee noted in its report, released three days after Mr. Christie was sworn into office on Jan. 19, that only 25 of the 70 staff members at the division, which oversees $80 billion, are investment professionals.
The amount of investments per professional is ”a significantly larger amount of capital per manager than most privately managed funds, and first among major actively managed U.S. public funds,” the report notes. “The staff is therefore tasked with a large burden and challenged by several perhaps unnecessary constraints.”
The report also noted that the investment staff uses “antiquated technology” and work processes that “ignore opportunities to reduce the labor intensity of the workflow and without regard for best practices.”
The report also recommends reviewing the division’s alternative investments program.
A spokesman for Mr. Christie could not be reached for comment.