Comprehensive municipal trust fund adopts new policy to support various investment managers
Diverse managers with a local presence are also considered to encourage the development of historically underrepresented groups
PITTSBURGH – Yesterday, the Board of Directors of the City of Pittsburgh Comprehensive Municipal Trust Fund (CMPTF) approved new policy to encourage the development of historically underrepresented groups and to add an emerging investment manager program for minorities, women and disadvantaged businesses to maintain a diverse pool of investment managers. This move will help provide more opportunities for MWDBE managers and make us a national leader in community pension funds.
“Building thriving communities for all means creating new opportunities for communities that have been underserved for far too long,” said Mayor Gainey. “This emerging investment manager program will help historically underrepresented groups build portfolios with our pension fund and help create new avenues to wealth for local, diverse investment managers.”
Mayor Gainey asked the CMPTF to form a subcommittee to study the possibility of creating the program at the May 5 board meeting. Subcommittee members, Deputy Chief of Staff Felicity Williams, Mark DePasquale and Rich Ruffolo, presented the proposal at the September 1 board meeting and approved it unanimously. This is the first time in the city’s history that such a program has existed.
Additional consideration is given to local diversity managers to encourage local diversity investment managers and provide opportunities. Qualified investment advisers must be owned by minorities, women, people with disabilities or other historically underrepresented groups. You must also have an investment portfolio of at least $100,000,000.
The new program includes target ranges for the percentage of the total portfolio – with a floor of 5% and a maximum of 20% in some classes. This ambitious benchmark is critical to our accountability for the success of this program.
The Board will direct its investment adviser to proactively identify MWBDE investment managers to be included in the search process and presented to the Board or relevant sub-committee.