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Municipal Trust Fund adopts new policy to support diverse investment managers

 

Last updated 9/6/2022 at 8:39pm



The City of Pittsburgh Comprehensive Municipal Trust Fund (CMPTF) board has adopted a new policy, in an effort to encourage the development of historically underrepresented groups, to add a Minority, Women, and Disadvantaged Emerging Investment Managers Program in order to retain a diverse pool of investment managers. This move will help provide increased opportunities for MWDBE Managers and make us a national leader in municipal pension funds.

"Building thriving communities for everyone means creating new opportunities for communities that have for far too long been underserved," said Mayor Ed Gainey. "This Emerging Investment Managers Program will help historically underrepresented groups build portfolios with our pension fund and help create new pathways for prosperity for local diverse investment managers."

Mayor Gainey requested the CMPTF form a subcommittee to research the possibility of creating the program at the May 5 board meeting. Subcommittee members Deputy Chief of Staff Felicty Williams, Mark DePasquale, and Rich Ruffolo presented the proposal at the September 1 board meeting and was adopted by unanimous vote. This is the first time in city history that such a program will exist.

Local diverse managers will be given an additional consideration in an effort to encourage and provide opportunities for local diverse investment managers. Qualified investment advisers must be owned by minority, women, persons with disabilities, or other historically underrepresented groups. They must also have an investment portfolio of at least $100,000,000.

The new program includes target ranges for percentage of the entire portfolio – with a floor of 5% and a max of 20% in some classes. This ambitious benchmark is critical for holding ourselves accountable for the success of this program.

The board will instruct their investments consultant to proactively identify MWBDE investment managers to be included in the search process and presented to the board or the appropriate Sub-Committee.

 

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