Retirement insights from a Colorado PERA perspective

Inside Colorado PERA

Interview with PERA’s New Director of Investment Stewardship

investment stewardship

Tara
Stacy was recently named as the Director of Investment Stewardship. Tara has
been with PERA since 2017. We talked to Tara about her new role and share the
highlights with PERA on the Issues readers below.

investment stewardship
Tara Stacy, PERA’s Director of Investment Stewardship

PERA on the Issues: How long have you been in your new job as Director of Investment
Stewardship? Is this a new position at PERA?

Tara Stacy:
Director of Investment Stewardship is a new position
at PERA. I’m a few weeks into my new post, but I’ve been with PERA for two
years now. I started here as an analyst in the Chief Investment Officer’s (CIO)
Office of Investment Administration. This new role developed organically from
some of the work I did in that capacity, so I am excited to continue leading
PERA’s progress in investment stewardship.

PERA on the Issues: What is your background in this area?

Tara Stacy:
Prior to joining the PERA investment team, I was at a
private, buy-side investment firm here in Denver for eight years. I was an
equity trader, trading stocks and currencies in global markets. Before that, I
was a portfolio administrator for institutional client accounts at the same
firm. That included clients with environmental, social, and governance (ESG)
related portfolio guidelines. So in trading and in administration, I was implementing
ESG mandates and looking at how investment performance was impacted by those
considerations.

Since joining PERA, I’ve been involved with managing
adherence to PERA’s investment policies and statutory divestment mandates, as
well as research and analysis relevant to the performance of PERA’s
investments. Over the past few years, that work has become more focused on using
my experience as PERA’s investors and management recognized the need to
formalize and strengthen our approach to investment stewardship. In 2018, PERA
released its first Investment Stewardship Report in answer to growing interest
in sustainable investing themes among our peers in the industry and among our
stakeholders. From there, the question became, ‘how can we build on this and
make our investment stewardship something that is even more financially meaningful
to PERA’s investment portfolio, and thus more meaningful to PERA members and
beneficiaries?’ My work is about answering that question.

PERA on the Issues: What does your typical day look like?

Tara Stacy: I have yet to see a typical day! My focus right now is on further developing PERA’s investment stewardship initiatives. That might involve strategizing with PERA’s CIO, sharing best practices in the industry, advising PERA’s executive management on related matters, evaluating our investment exposures to sustainability factors, driving PERA’s engagement with stakeholders around our stewardship or conducting research on sustainable investing trends and related risks and opportunities.

Of course I also spend a decent amount of time with our
investment teams, implementing investment stewardship initiatives, sharing
research and ideas with analysts and portfolio managers and meeting with
management teams of the companies in which we invest to talk about the ways
they’re considering or incorporating sustainability into their business models and
how that affects their profitability.

PERA on the Issues: PERA’s approach to investment stewardship encompasses many facets.
What are the top priorities you’re focused on?

Tara Stacy: There is a lot of complexity and nuance to
stewardship, with no single approach to suit all investors. There are so many
pieces in the mosaic of information investors must consider in meeting their
objectives. But when you step back and look at the big picture from PERA’s perspective,
it’s all about seeking financial sustainability. We have to maintain that
vision, and I’m focused on continuing to develop four foundational practices to
uphold that objective:

  • Protect
    assets through cost savings and cost consciousness 

    • Integrate
      relevant factors into investment decisions
    • Advocate
      for robust markets as a long-term institutional investor
    • Evaluate
      exposure in portfolios to identify value drivers

PERA on the Issues: How does what you’re doing benefit the PERA membership?

Tara Stacy:
Financial sustainability is necessarily our primary
focus as fiduciaries to PERA’s members and retirees. We have to manage PERA’s
investments to protect the financial sustainability of the Fund for their sole
benefit. So we have a responsibility to make investment decisions based on all
relevant factors that impact the risk-return profile of PERA’s portfolio. By
further developing our investment stewardship, we are strengthening PERA’s
commitment to the retirement security of our membership. We’re still in the
germination stages with our formal investment stewardship program, but that
focus on financial sustainability for PERA’s membership continues to drive our
investments and my work.

PERA on the Issues: Any thing you’d like the PERA on the Issues readers to know
about you?

Tara Stacy: I’m honored and excited to continue serving PERA’s
members and retirees in this new capacity.

Read
PERA’s 2019 Investment Stewardship Report and see the Investment Stewardship infographic.

Comments

  1. Gerald Esquibel says:

    Hi Mrs. Stacy, Congratulations
    I would like to know what’s your strategies for the upcoming recession or slowdown in the economy.
    With the economy doing so well for the past two years, and our Portfolio can not make enough money to sustain a increase in our monetary benefits, what does the future increases look like? ( 0%)
    I’m of the plan if the retires cannot get an increase, those working for us should also take the responsibility of no increases.
    I’ve had investments in IRA’s, ROTH’s, Stocks, for 40 years, and with fees and taxes, the only ones making money with no risks, are those selling these items! Does The Past Dictate Us To Rethink Our Approach For The Future?

    Thanks for Your Time,
    Mr. Esquibel

  2. Justin A. Hamel says:

    Congratulations to Ms. Stacy on her appointment to the new position at PERA of Director of Investment Stewardship. This will be both a highly challenging, data and goal driven position that also gives the incumbent an opportunity to think outside the box and make many decisions that will be critical to the financial health, ongoing growth and long term stability of PERA’s investments. In today’s volatile financial markets it is a daily challenge to stay focused on the big picture and yet avail one’s organization of the beneficial opportunities that are there for the harvesting. Ms. Stacy’s broad-based prior experience in private sector investment firms and her productive time in the trenches with PERA will have equipped her well for success in carrying out her powerful new responsibilities. I know that all PERA members and retirees join with me in wishing Ms. Stacy all the very best for success in her new endeavors on our behalf.

  3. Lorraine Freyta says:

    Would like to know how much this position is costing us.

  4. I got to this page for curiosity, following a thread that might take me to better understand the financial status of PERA and to hopefully find reassurance that the 21st Century still believes that American citizens can retire with a pension. At this point I am skeptical. I am 79, with a PERA pension, but I see my ‘otherwise’ successful children struggling with their own savings, which they often manage through ‘screening’ securities programs…
    Americans seems asleep when it comes to savings and pensions. Many feel helpless; many are naive; many count on a successful past instead of future; others don’t care. I believe there are serious problems ‘out there’, when it comes to handling securities. We move more and more toward an age of ‘EXTREME PLUTOCRACY’. Over one hundred ‘individuals’ walk away from the ‘Market’ with a BILLION in their pocket every day, or week, or month. Hordes of others ‘individuals’, often members of ‘Trading Academies’ follow and imitate their peers at a more modest scale. This is allowed and perhaps encouraged by an ignorant SEC, that has given away the key of Wall Street to the ‘shorting people’. Look closely, and you will see that ultimately the result toward which we are moving is a perfect PYRAMID, UNDER THE GUISE OF JUSTICE, HONESTY AND HONORABLE NATIONALISM. Good luck saving money through the Market in the current conditions!

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe To Stay Up To Date

  • Share

  • Print