By Christine Giordano
Arizona’s Public Safety Personnel Retirement System (PSPRS,)
which has more than doubled in size in less than a decade, is losing its
administrator but gaining a second deputy CIO.
It’s rare that a $23 billion plan would have two deputy CIOs, but as markets become more volatile, Chief Investment Officer Mark Steed is known for his strategic out-of-the box thinking. The decision to add a second deputy is partially due to the
plan’s substantial growth, as well as “to streamline decision-making by giving
PMs and analysts additional resources,” explained Steed in a note to Markets Group.
“As portfolio’s mature and markets changes there’s a
constant barrage of important decisions. Having too many people, or layers,
involved in decision making can bog a plan down, but so can having too few,”
said Steed.
Adding the second deputy position is part of a plan for
controlled bifurcation.
The current Deputy CIO, James Ko, is remaining with PSPRS
and will focus on liquid investments (Public Equity, Fixed Income and
Diversifying Strategies). Newly hired Alex Dorf will focus on the portfolio’s
illiquid investments (private equity, private credit,) said Steed.
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Dorf was nabbed from the UPS team that got outsourced to
Goldman Sachs. He worked for the $43 billion UPS for a decade, handling
strategy, due diligence, monitoring and reporting for the $5b private equity portfolio. He began
his career at UPS as a senior investment analyst supporting portfolios in
energy, real estate, private equity, and credit.
Prior to his investment career, Dorf served in the U.S. Army
for four years as a field artillery officer and is a combat veteran of Iraq and
Afghanistan, and holds a Chartered Financial Analyst (CFA) designation and an
M.B.A. with a concentration in finance and alternative investments from Emory
University, and a B.E. in Mechanical Engineering from Vanderbilt University.
“Alex brings a deep understanding of alternative
investments, broad experience across asset classes, and a leadership style from
both corporate finance and military service,” said Mark Steed, PSPRS’ chief
investment officer in a written PSPRS release. “He will be a valuable asset as
we continue to focus on generating strong, risk-adjusted returns for our
members and stakeholders.”
As Dorf joins, a key executive will be leaving.
Michael Townsend, who was hired by the PSPRS board in 2019, has
announced his plans to retire in November. Over the past five years, he has
aided PSPRS as it struggled through operational upgrades, key hires and an
employer outreach campaign that resulted in state and local governments paying
down more than $5.5 billion of unfunded pension liabilities. His key hires for
PSPRS have included Chief Auditor Cathleen Davis, Compliance Officer Angela
Egelhoff, Assistant Administrator Erin Higbee, Chief Financial Officer John
Moorman, Senior Financial Consultant Clark Partridge and Deputy Administrator
Mike Smarik.
The System’s assets, also boosted from investment returns, have
more than doubled to exceed $23.2 billion since Townsend’s hiring, and he’s helped
to raise the funded levels of PSPRS.
“Mike Townsend will leave an incredible and lasting impact
on all PSPRS-managed plans,” said PSPRS’ Board of Trustees Chairman Scott
McCarty in a written release. “Through his collaborative work, he’s helped
secure retirement futures for tens of thousands of first responders,
corrections officers, judges and elected officials. This is an accomplishment
that benefits every stakeholder and Arizona taxpayer.”
