Andrew C. Palmer, CIO at the $69 billion, Maryland State Retirement & Pension System, Baltimore, will retire at the end of the fiscal year, he confirmed in an email Jan. 22.
Palmer will continue to serve as CIO while the system’s board of trustees and the Maryland State Retirement Agency conduct a global search for his successor, according to a news release. He’s slated to step down June 30 and is working closely with Martin Noven, the retirement system’s executive director, and board to ensure a smooth transition, the news release said.
Palmer, who was hired in 2015 and previously served as the deputy CIO for the $70.2 billion Tennessee Consolidated Retirement System, Nashville, announced his retirement at a Jan. 22 board meeting.
“It has been an honor to help lead this organization through a transformative decade,” Palmer said in a statement. “Collectively, the board, General Assembly and investment team have positioned the system’s investment program to generate strong returns with moderate risk through a disciplined investment practice and a focus on managing costs.”
Over his nearly 10 years as CIO, Palmer bolstered the investment team, lowering costs and enhancing returns by internally managing 20% of the assets in public markets and by initiating a co-investment program across all private markets.
Under Palmer’s leadership, the team consistently outperformed the pension fund’s policy benchmarks, reducing return volatility and enabling higher compound growth, according to the release. The system’s investment portfolio was valued at $46 billion when Palmer started and has since grown to $69 billion, with $2.4 billion of the increases coming from excess performance.
In fiscal year 2024, Maryland exceeded its benchmark with a net 6.9% return.
“It has been a privilege to work alongside Andy in advancing our mission to give the more than 420,000 Marylanders we serve the best chance for retirement success,” Noven said in a statement. “Andy has developed an excellent investment team that will continue to prioritize our members’ best interests and deliver hard-earned retirement benefits to Marylanders.”