HomeMy WebLinkAbout06.a. New fixed income manager at HighMark Capital Management Page 1 of 2
Item 6.a.
CENTRAL SAN
September 22, 2020
TO: FINANCE COMMITTEE
FROM: PHI LIP LEI BER, DI RECTOR OF FINANCEAND ADMINISTRATI ON
REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: NEW FIXED INCOME MANAGERAT HIGHMARK CAPITAL MANAGEMENT
In May 2020, Andrew Brown of HighMark Capital Management notified Central San that their fixed income
manager, Jack Montgomery, would be retiring. Mr. Montgomery played the lead role in managing the fixed
income portion of the Other Post-Employment Benefits (OPEB) and Pension Pre-Funding Plans.
After a career spanning over four decades in the investment industry and over twenty-six years
at HighMark Capital Management, Jack Montgomery, CFA, Director of Taxable Fixed Income
Strategies, will retire on May 31, 2020. Philip Levy, CFA, CFP, Portfolio Manager and Senior
Credit Analyst, who has served as co-manager of your taxable fixed income portfolio for many
years, will continue to manage your individual bond investments while I continue to manage
your overall investment portfolio. In addition, an executive search is underway for a Head of
Fixed Income who will join Philip in the management of your fixed income portfolio. There are
no planned changes to the strategy or investment process as a result of Jack's retirement.
Jack and Philip have worked closely together since Philip joined HighMark's Taxable Fixed
Income Strategies team in 2008. Philip began his career in 1991 working for companies such as
American Century Investments, Franklin Templeton Investments, and KPMG Peat Marwick. He
holds a BA degree from UC Santa Barbara and is a CFA charterholder and a Certified Public
Accountant. Philip is supported by a team of investment professionals throughout the
organization, including credit analysts as well as liquidity and fixed income portfolio managers
and traders.
We believe the experience and tenure of the team will help to ensure a smooth transition and we
are confident the team is positioned for continued success.
In September, Andrew Brown provided the following update, announcing that HighMark has hired Greg
Haendel, CFA, as the new head of the fixed income department.
I am pleased to announce our new Head of Fixed Income for Highmark Capital Management,
Greg Haendel, CFA. Mr. Haendel joins us as a Managing Director, and in his role he will be
responsible for the overall management of our fixed income division, including oversight of our
fixed income strategies: Core Fixed Income, Short-Term Fixed Income, Tax-Free Fixed Income,
as well as Institutional Liquidity Management. In addition, he will be a member and active
participant of our Investment Policy Committee,Asset Allocation Committee, and Compliance
September 22, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 72 of 75
Page 2 of 2
Committee.
Mr. Haendel has over 20 years of investment management experience, the majority of which
have been in fixed income. He has had a highly successful career and is a veteran in the space,
most recently serving as Senior Portfolio Manager and Head of Investment Grade Credit for
Tortoise Credit Strategies in Los Angeles. Prior to his time with Tortoise, he held senior-level
portfolio manager positions at Bradford& Marzec, First Western Capital Management,AEGON
USA Investment Management, Transamerica Investment Management, and CoBankACB. He
received his undergraduate degree in Economics from Amherst College and his MBA from The
Anderson School at UCLA. He holds the Chartered Financial Analyst designation and is a
member of the Los Angeles Society of Financial Analysts.
We are excited to have Greg join our team. In the interview process, Greg stood out as a proven
leader and an accomplished investor whose global knowledge will support our continued focus
on delivering strong client outcomes. We are confident that Greg's leadership experience
combined with his deep industry knowledge will serve our team well and advance our business
even further.
Strategic Plan Tie-In
GOAL THREE: Fiscal Responsibility
Strategy 1—Maintain financial stability and sustainability, Strategy 2—Ensure integrity and transparency in financial
management
September 22, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 73 of 75