CalPERS CIO Nicole Musicco Departing

Nicole Musicco is departing as cio of the $463.1 billion California Public Employees Retirement System on Sept. 29, the plan announced today.

Musicco said in a statement that the decision to leave CalPERS will allow her to attend to the immediate needs of family in her native home of Toronto, Canada.

“Leading the CalPERS investment office has been an honor, and I am proud of the work my team has done to fulfill the retirement promises made to the 2 million Californians who have spent their lives in public service,” she said. “However, at this time I need to prioritize those who need me the most, my family and children.”

She joined the plan in March 2022 from RedBird Capital Partners, where she led the private equity firm’s Canadian investment business.

Her departure after less than two years in the role highlights what is becoming a revolving door of cios at the country’s largest defined benefit pension plan.

Musicco took over the role from Deputy CIO Dan Bienvenue, who served as interim cio for 19 months following the resignation of Yu “Ben” Meng in August 2020. Bienvenue will again step into the interim cio role following Musicco’s departure.

Meng also departed after less than two years in the role and took over in January 2019 from Interim CIO Eric Baggesen, who filled in after Ted Eliopoulos left in late 2018 after roughly four years in the position.

In total, the plan has had six investment heads, including interim cios, since 2014.

Illinois Police Officers’ Pension Investment Fund Announces Search For Active Management Of Bank Loans Strategy

PEORIA, IL, September 18, 2023 – The Illinois Police Officers’ Pension Investment Fund (IPOPIF), a consolidated asset pool that exists for the exclusive purpose of protecting and investing the assets of the pension funds covering police officers serving and protecting all downstate and suburban Illinois municipalities, today announced that it is soliciting proposals for active investment management of bank loans strategy. The request for Proposal (RFP) is available at https://www.ipopif.org/rfp/.

Download Full RFP

National Bankers Association and National Bankers Association Foundation release lending insights in our latest report.

Minority Depository Institutions: Paycheck Protection Program (PPP) Lending Insights, authored by Anthony Barr, Research and Impact Director, and Carl Romer, Research Manager at the National Bankers Association Foundation, provides insight on the important role that MDIs had in supporting small businesses and their employees with the Paycheck Protection Program (PPP) during the COVID19 pandemic.

As detailed in this piece, our research finds that MDIs outperformed non-MDI banks in deploying PPP loans and loan dollars to minority and low-income communities.

Survey Report Link: Minority Depository Institutions Paycheck Protection Program (PPP) Lending Insights

National Bankers Association social media: Linkedin | Twitter | Facebook

Specifically, our analysis finds that:

  • ​119 MDIs collectively issued nearly 270,000 PPP loans and more than $16 billion in loan dollars.
  • MDI participation in PPP lending was substantial across all MDI types, with 81% of Asian American or Pacific Islander (AAPI) MDIs participating, 84% of Black or African American (Black) MDIs, 84% of Hispanic or Latino (Hispanic) MDIs, and 94% of American Indian or Alaska Native (AIAN) MDIs in existence as of Q4 2021.
  • MDIs loaned money to all 50 states: Washington, D.C., Puerto Rico, Guam, the United States Virgin Islands, American Samoa, and the Northern Mariana Islands.

Ranking Member Waters Urges Fortune 100 Financial Services CEOs to Remain Committed to Diversity and Inclusion Efforts Despite Republican Threats

WASHINGTON, D.C. –  Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, sent a letter to the CEOs of the nation’s Fortune 100 financial services companies urging them to continue their diversity and inclusion practices, particularly following threats from Republican Attorneys General pressuring them to divest from these practices, which Congresswoman Waters slammed them for in a recently released statement. In the letter, Ranking Member Waters emphasizes the importance of diversity and inclusion efforts to level the playing field for underrepresented groups and the clear benefit it adds to their bottom line, and urges the CEOs to remain committed to upholding diversity and inclusion in the workplace and thwarting attacks on the progress we’ve made following the murder of George Floyd.

In 2019, one of the first actions then Chairwoman Waters took was to establish the Diversity and Inclusion subcommittee, which was chaired by Congresswoman Joyce Beatty. Under their leadership, the subcommittee authored several reports examining the lack of diversity in the financial services industry and undertook historic work to increase diversity in the industry at all levels. These extremist efforts threaten to undo all of this critical work.

“I write in response to the letter sent to your company by Republican AGs urging you to divest from diversity and inclusion practices. I am particularly concerned by the use of misinformation and threats of “serious legal consequences” as a way to intimidate you from engaging in commonsense business practices,” said Ranking Member Waters. Diversity and inclusion is needed now more than ever as America is expected to become majority people of color by 2045. However, despite rapidly changing demographics, the financial services industry remains mostly white and male, and there is an intentional effort to maintain the status quo. Though America has seen some progress in ensuring that America’s workforce is as diverse as the American people, we must not overlook historical context and ongoing systemic bias that necessitates diversity and inclusion practices. The recent Supreme Court decision on affirmative action in college admissions should not be used as a basis to attack workplace diversity initiatives.”

See the letter here and below.

Dear Chief Executive Officers:

I write in response to the letter sent to your company by Republican AGs urging you to divest from diversity and inclusion practices. I am particularly concerned by the use of misinformation and threats of “serious legal consequences” as a way to intimidate you from engaging in commonsense business practices. Diversity and inclusion is needed now more than ever as America is expected to become majority people of color by 2045. However, despite rapidly changing demographics, the financial services industry remains mostly white and male, and there is an intentional effort to maintain the status quo. Though America has seen some progress in ensuring that America’s workforce is as diverse as the American people, we must not overlook historical context and ongoing systemic bias that necessitates diversity and inclusion practices. The recent Supreme Court decision on affirmative action in college admissions should not be used as a basis to attack workplace diversity initiatives.

As previous Chair of the Financial Services Committee, I established Congress’ first-ever subcommittee on Diversity and Inclusion, which was chaired by my colleague Congresswoman Joyce Beatty. Under our leadership, this subcommittee authored several reports examining the lack of diversity in the financial services industry and undertook historic work to increase diversity in the industry at all levels. The progress we have made would not be possible without companies like yours being amenable to our recommendations aimed at increasing diversity and inclusion practices and policies. To be clear, these programs are not about discriminating against any group but are aimed at leveling the playing field and creating a fair and inclusive environment that reflects the unique experience of each individual at the company. For groups that have been in power for so long, the liberation of others tends to feel like oppression.

Across three reports examining diversity and inclusion at Americas largest banks, investment firms, and insurance companies, we found that, following the creation of the Subcommittee on Diversity and inclusion, many financial institutions implemented D&I policies that lead to greater representation for women and people of color at the start of 2021 compared to 2018. However, despite this progress, representation continues to decline at every step of the corporate ladder, particularly for women of color (Black, Latina, and Asian) whose representation falls by 80% as they seek to fill more senior roles. Representation of women and people of color in the financial services industry trails their representation in the general population; women are 50.5% of the population and people of color are 40.7%. These statistics indicate that the financial industry still has work to do to achieve equal opportunity across the board. This is why we must continue to work together to build a more inclusive institutions so that people of color are not left behind.

I am pleased that you also received a letter from Democratic AGs, encouraging your companies to remain committed to your D&I efforts despite Republican intimidation. I hope that this reassures you that efforts to achieve a diverse workforce and inclusive workforce environment is not only legal, but also avoids discriminating against diverse groups who have long been excluded from top companies. Addressing disparities that stem from this country’s long history of racism should never be unlawful.

We know that highly inclusive organizations, especially those that make a concerted effort to be diverse in all aspects of their business, are more productive and profitable. Organizations like yours that make diversity and inclusion a priority see the results of those investments in their bottom line. I expect that each of you will remain committed to diversity and inclusion in your workplace and hope that you will join me in thwarting off attacks on the progress that has been made towards racial equity since the murder of George Floyd.

Sincerely,

MAXINE WATERS
Ranking Member
U.S. House of Representatives
House Committee on Financial Services

CC: The Honorable Patrick McHenry, Chairman, Committee on Financial Services

SEC’s Small Business Capital Business Formation Advisory Committee

The Securities and Exchange Commission is seeking candidates for appointment to the Small Business Capital Formation Advisory Committee to provide advice and recommendations on Commission rules, regulations, and policy matters relating to small businesses, including smaller public companies.

The Committee was established by the SEC Small Business Advocate Act of 2016. Committee members represent a diverse spectrum of leaders, investors, and advisors who work with early stage private companies and smaller public companies, including minority- and women-owned small businesses.

“The Small Business Capital Formation Advisory Committee and its members are key to ensuring a wide array of perspectives are represented in SEC policymaking,” said SEC Chairman Gary Gensler. “I look forward to working with the members of the Committee to continue to uphold the SEC’s mandate to facilitate capital formation for companies of all sizes, while ensuring investors are adequately protected.”

The Committee advises and consults with the Commission on rules, regulations, and policies as they relate to:

  • Capital raising by emerging, privately held small businesses and publicly traded companies with less than $250 million in public market capitalization;
  • Trading in the securities of emerging companies and smaller public companies; and
  • Public reporting and corporate governance requirements of emerging companies and smaller public companies.

Members of the public interested in serving on the Committee should promptly email a letter of interest with applicable information about their relevant experience. To be considered timely, submissions must be received by February 17, 2023. Relevant experience may include: (i) representing emerging companies engaging in private and limited securities offerings or considering an initial public offering (IPO), professional advisors of such companies, and investors in such companies; (ii) service as an officer or director of minority-owned small businesses or women-owned small businesses; (iii) representing smaller public companies, the professional advisors of such companies, and the pre-IPO and post-IPO investors in such companies; and (iv) representing participants in the marketplace for the securities of emerging companies and smaller public companies.

NASP Congratulates Kweku Obed’s Appointment to the PBGC Advisory Committee

Marquette Managing Director Kweku Obed, CFA, CAIA has been appointed by President Joseph R. Biden, Jr. to the Pension Benefit Guaranty Corporation (PBGC) Advisory Committee. PBGC is a federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) that protects retirement security and the retirement incomes of over 33 million American workers, retirees, and their families in private sector defined benefit pension plans.

The experience and expertise of the seven-member Advisory Committee will advise the agency on investment policy and other matters related to PBGC’s mission. In his role, Kweku will represent the interests of employers. “I am pleased to welcome the new members of the Advisory Committee,” said PBGC Director Gordon Hartogensis. “They will represent the interests of employers and the public and we look forward to working with them.”

Please visit the PBGC website for the full press release and additional information.