Key Takeaways
- • Prabhu Palani, Chief Investment Officer of the City of San José's pension funds, was selected as a top pension chief investment officer by Trusted Insight, according to a City of San José news release dated December 28, 2022.
- • The City's Federated Plan reached the top 10 percent nationally, and the Police and Fire plan reached the top 25 percent, for the three-year period ending fiscal year 2021-22.
- • Federated Retirement System Board Chair Spencer Horowitz said the team right-sized the plan's risk exposure while outperforming its asset allocation benchmark, moving from the bottom decile to the top decile of peer performance in a few short years.
- • Officials said the plan's funded status still requires improvement, even as investment returns have turned a corner.
Summary
Prabhu Palani, Chief Investment Officer of the City of San José's pension funds, has been named a top pension chief investment officer by Trusted Insight, a recognized investment publication, according to a City of San José press release issued December 28, 2022. The City said the award recognizes the investment team in the Retirement Department and the turnaround in performance of the City's pension plans.
The release states that the City's Federated Plan reached the top 10 percent in the nation and the Police and Fire plan reached the top 25 percent for the three-year period ending fiscal year 2021-22. Spencer Horowitz, Chair of the Federated Retirement System Board, said the team achieved the dual goal of right-sizing the plan's risk exposure while outperforming its asset allocation benchmark. He noted the plan had climbed from the bottom decile to the top decile of peer performance in a few short years, while adding that the plan's funded status still needs work.
Mayor Sam Liccardo said the recognition reflects Palani's performance and that of his entire team during periods of severe market turbulence. Palani said the team aims to deliver top-notch performance for City employees and credited board oversight for the investment process. Drew Lanza, Chairman of the Police & Fire Department Retirement Plan, linked the results to governance reforms that began a decade ago with Measure G, which he said have supported investment returns consistently above benchmark. Roberto Peña, Director of Retirement Services, described the award as validation of the investment staff's work.
The release states that the City's Federated Plan reached the top 10 percent in the nation and the Police and Fire plan reached the top 25 percent for the three-year period ending fiscal year 2021-22. Spencer Horowitz, Chair of the Federated Retirement System Board, said the team achieved the dual goal of right-sizing the plan's risk exposure while outperforming its asset allocation benchmark. He noted the plan had climbed from the bottom decile to the top decile of peer performance in a few short years, while adding that the plan's funded status still needs work.
Mayor Sam Liccardo said the recognition reflects Palani's performance and that of his entire team during periods of severe market turbulence. Palani said the team aims to deliver top-notch performance for City employees and credited board oversight for the investment process. Drew Lanza, Chairman of the Police & Fire Department Retirement Plan, linked the results to governance reforms that began a decade ago with Measure G, which he said have supported investment returns consistently above benchmark. Roberto Peña, Director of Retirement Services, described the award as validation of the investment staff's work.
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