 TRENTON
- San Francisco-based Strategic Investment Solutions (SIS) has been recommended
by a State selection committee to be awarded a three-year contract as
general investment consultant to the New Jersey Division of Investment
and the New Jersey Investment Council.
SIS
is one of eight firms that responded to Request For Proposal (RFP),
issued by the Department of the Treasury last fall for a full-service
consultant to New Jersey's multiple investment funds. The firm achieved
the highest score in two rounds of candidate rankings following written
and oral presentations to the evaluation committee. The award recommendation
was then forwarded to Treasurer John E. McCormac, who said today that
he has accepted the committee's choice of the firm as the best match
for the scope of work described in the RFP.
Retaining
broad, general consulting services was one of the key recommendations
of Independent Fiduciary Services, which conducted an operational review
of New Jersey's pension investment program last year. The State is also
taking steps to implement other recommendations, such as diversifying
its portfolio beyond traditional stocks and bonds and into some alternative
investments.
The
consultant duties will include assisting the State Investment Council
in developing and formulating investment policies, and making comprehensive
recommendations concerning asset classes and asset allocation and providing
advice on the methodology and timetable for achieving such allocation.
"New
Jersey's consultant services to date have been limited to monitoring
and benchmarking performance," said Treasurer McCormac. "While
these functions are important, they fall short of what pension funds
of New Jersey's size around the country do to keep in tune with the
trends and changing paradigms in the financial markets. This full-service
general consultant will work side by side with the Investment Division
and Council to develop and maintain the best possible investment program
for New Jersey," he said.
Treasurer
McCormac termed SIS "an excellent fit for New Jersey's needs,"
noting that its consultant clients to date have included state plans
of similar size and challenges, including CalPERS and New York State
Common Retirement Fund, both having total assets in excess of $100 billion.
The
firm's consulting experience also includes the State of Wisconsin Investment
Board and the Ohio Public Employees Retirement Fund.
SIS
has agreed to comply with any and all disclosure and ethical regulations
that have been or will be adopted by the Investment Council. SIS has
also disclosed that neither the firm nor any of its officers have ever
contributed directly or indirectly to political parties or candidates
for any public office held in New Jersey.
The
firm is expected to begin its work in the next few weeks.
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