Wayne Wicker is the Senior VP and CIO of ICMA Retirement Corporation, an asset manager that oversees $50B across more than a million retirement accounts of City and County public sector employees throughout the country. Before joining ICMA-RC in 2004, Wayne had a distinguished career as an allocator and manager, starting as an allocator at the corporate pension fund of Dayton Hudson (now Target Corporation) in the 1980s and the Howard Hughes Medical Institute endowment in the mid-1990s, after which he moved to direct investing in large cap growth equities for seven years at Cadence Capital Management in 1998. Our conversation covers Wayne’s career path, multi-asset investing, and the ins and outs of managing defined contribution plans as a fiduciary and as a business. We discuss asset allocation strategies, regulatory limitations, stable value products, retirement shortfall risks, active vs. passive on large pools of capital, and managing internal and external teams. This episode took place at a recent Institutional Investor conference for Corporate Funds and Insurance Portfolios, with the core discussion about ICMA-RC occurring in front of a live audience.   Learn More Join Ted's mailing list at CapitalAllocatorsPodcast.com Write a review on iTunes Follow Ted on twitter at @tseides For more episodes go to CapitalAllocatorsPodcast.com/Podcast   Show Notes 2:01 – How Wayne first got into the investment business 3:58 – What he did after getting his MBA 7:25 – How he learned about the pension business as a staff of one 9:18 – Key investment lessons from his early career 11:08 – Decision to move on from Target/Dayton Hudson 12:44 – Key differences between overseeing a corporate pension vs a hospital endowment structure 14:25 – How much did the difference in the investing strategy come from the mission of the funds vs the boards overseeing them 15:50 – What could Wayne do on the margin at Howard Hughes 17:28 – Transition to CIO 22:40 – Live Show Begins 23:00 – Defining ICMA-RC 23:32 – How does Wayne think about setting investment objectives with such a diverse group of clients 25:02 – Is it frustrating to have a more finite universe of investing options compared to previous work at Howard Hughes and Dayton Hudson 26:08 – Views on active vs passive 27:50 – The manager selection process 28:49 – Managing risks with external managers vs an internal team 30:34 – How does the team at ICMA-RC put their best ideas forward without governance getting in the way 31:34 – What constraints are imposed on investment decisions by the various regulatory bodies that ICMA-RC faces 32:40 – Their outlook on the market 34:08 – How does ICMA-RC’s constituents respond to market performance             35:32 – Closer examination using 2008 stock performance 36:23 – How does Wayne educate investors 38:00 – Next steps for ICMA-RC 38:51 – Most challenging aspect of Wayne’s work life 39:41 – Is there a looming pension crisis 40:53 – How do the Financial Planners help the employees if things don’t work out 42:10 – How do they think about financial planning for clients when there’s a chance defined benefit plans could come up short in the future  45:06 – How does Wayne address manager selection differently today given some of the constraints that he faces 47:19 – What has led Wayne to want to exit manager relationships 49:46 – Is there a point where Wayne would decide the optimal strategy is to go passive 51:28 – How does Wayne think about technology and the way it will be disrupt the industry 52:58 – Balancing the internal/external dynamic when hiring people 54:30 – Wayne’s greatest success and failure over the last 14 years 55:50 – Where will the move into emerging markets come from  56:27 – What does Wayne think of the new products that can help younger constituents meet their retirement objectives 57:41 – Live Show Ends/Closing questions

Increased sophistication in manager assessment is an important trend in the search for alpha. My conversations with Michael Mauboussin and Annie Duke suggested frameworks to think about enhanced decision-making processes and prompted a deeper dive into the ways allocators and managers can improve their craft. This week and next explores some of the tools available to help make it happen. Basil Qunibi is the CEO of Novus Partners, a data analytics company whose mission is to help the world’s top investors generate higher returns. As big data pervades commerce across industries, Novus is the most well-known provider of tools to analyze investment manager performance, allowing allocators to play Moneyball by breaking down the attributes of manager skill. Novus’ 200 clients are split between allocators and hedge fund managers who collectively oversee approximately $3.5 trillion of assets.  You can learn more about the company and its service at novus.com Our conversation starts with Basil’s path to creating Novus and dives into the tools an allocator can use to improve their understanding of a manager’s skill, including the data sets available to allocators, the levers a manager employs in driving returns, the relationship between data and a manager’s process, a framework to analyze crowded names, and future horizons for data-driven assessments of managers. DONATE TO CYCLE FOR SURVIVAL, http://mskcc.convio.net/goto/ted.   Learn More Join Ted's mailing list at CapitalAllocatorsPodcast.com Write a review on iTunes Follow Ted on twitter at @tseides For more episodes go to CapitalAllocatorsPodcast.com/Podcast   Show Notes DONATE TO CYCLE FOR SURVIVAL, http://mskcc.convio.net/goto/ted. 2:46 – The founding of Novus 5:45 – What did the qualitative assessment of managers look like at first for Basil 6:50 – How did he start to quantify managers 09:47 – What he saw in the initial data 13:24 – The early days of Novus, going all the way back to the concept             14:05 – Direct from Dell: Strategies that Revolutionized an Industry             14:07 – Sam Walton: Made In America 16:27 – Novus’ first product 19:13 – Core components of measuring the skill of a manager             19:54 – Exposure management             22:10 – Capital allocation             23:27 – Idea selection             24:10 – Position sizing             25:11 – Tactical trading 25:45 – How should this data be used 28:08 – Why this data is useful for capital allocators 30:48 – How efficient is the market for talent 31:54 – What has happened to stocks that are crowded compared to those that aren’t 35:15 – How does Novus use conviction in their metrics 36:43 – Consensus and concentration 40:02 – How Novus went from servicing allocators to also helping managers themselves 42:22 – Overview of Novus’ clients and what they’ve been able to learn from all of this data 46:45 – What other markets could Novus be applicable to 48:56 – Most creative application of this data by a client 49:53 – Closing questions