Fernando Vinzons became chief investment officer of the Chicago Teachers’ Pension Fund (CTPF) in July 2022, with responsibility for the operations of CTPF’s $13.1 billion investment portfolio.
He filled a position vacated by Angela Miller-May, who left CTPF last summer to join the $53.1 billion Illinois Municipal Retirement Fund as its chief investment officer. Vinzons previously served as director of investments for the Cook County (Ill.) Pension Fund.
Vinzons has more than 18 years of investment and financial market expertise, with four years as director of investments and 10 years as a senior member of Cook County’s investment team. During his tenure at Cook’s County, he was responsible for growing the county’s underfunded pension portfolio — to $14 billion from $5.2 billion — and improving the fund’s peer ranking to the 28th percentile from the 65th.
As Vinzons begins his new role at CTPF, Alternatives Watch asked him to share a few of his thoughts on his new role, his outlook on the current investment environment, and on alternative assets.
AW: As the new CIO of a $13 billion institution, what is your biggest investment concern for the fund in the current macroeconomic environment?
Vinzons: Uncertainty is always the enemy, but we have a portfolio designed to weather volatility and are well positioned after a year of record returns.
AW: How would you compare/contrast being the CIO of a $5 billion retirement fund versus directing the investments of a $13 billion retirement fund?
Vinzons: It is not dissimilar. Strategic asset allocation remains a key facet of institutional portfolio management no matter the size of the fund. The difference is in sizing manager allocations for best effect and efficiency.
AW: How would you rank your priority objectives this year as CIO of CTPF?
Vinzons: Developing our investment team, providing support to our talented staff, and ensuring that we continue to focus our efforts on implementing the Trustees’ objectives and meeting the goals of our investment policy.
AW: What has been the biggest challenge you have faced so far in your role as an institutional fund investment director?
Vinzons: Information overload. There is a steep learning curve in a new organization, but I have a talented team who has helped me get up to speed quickly.
AW: How would you describe your investment outlook/philosophy concerning alternative assets?
Vinzons: We are not trying to time the market with any of our alternative investments. But we know that diversification whether by vintage year, sector, strategy, or geography is critical. In some cases, such as private equity, some of the best historical vintage years have followed periods of volatility in the public markets.
AW: What is CTPF’s current exposure and policy exposure to alternative assets, and what new alternative assets do you think may have attractive prospects, i.e., cryptocurrencies, infrastructure, alternative energy, etc.?
Vinzons: CTPF’s current exposure is approximately 18% vs 16% target. We continue to be positive about private equity’s prospects. We believe that performance across the best managers persists, and investors are rewarded for access to those funds.
AW: What was the last book that you read? And how did it grab you?
Vinzons: I just re-read The War of Art by Steven Pressfield for the third time. Whenever I need inspiration, this is the book I read.
