Ennis Knupp will serve on a three-year contract, contingent on successful contract negotiations, with an option to extend the contract for two additional years.
The investment committee of the $4.3 billion system replaced Callan, which had been the system’s general investment consultant for 20 years, because committee members felt it was “time for a change,” Liza Crisafi, chief investment officer, reported to the board at its meeting Friday. She noted that staff and the investment committee members were not dissatisfied with the Callan’s performance.
The committee voted 5-1 in favor of Ennis Knupp, with most appreciating the consultant’s “clarity” on such issues as a new asset allocation and specific investment manager recommendations, Ms. Crisafi said at the meeting. All committee members appreciated that Ennis Knupp has no other line of business other than investment consulting that could be seen as a conflict of interest.
R.V. Kuhns was also a finalist.
The system issued an RFP Jan. 25. Callan’s three-year contract expires at the end of May.
Separately, the system’s board at its May 28 meeting is expected to consider a new real estate investment plan in which staff and Townsend Group, the system’s real estate consultant, will recommend increasing the portfolio’s suballocation to core properties.