Office of the State Treasurer


CONTACT: Tom Vincz
January 30, 2004
(609) 633-6565
Strategic Investment Solutions Selected as General
Consultant to Investment Division

 TRENTON - San Francisco-based Strategic Investment Solutions (SIS) has been recommended by a State selection committee to be awarded a three-year contract as general investment consultant to the New Jersey Division of Investment and the New Jersey Investment Council.

 SIS is one of eight firms that responded to Request For Proposal (RFP), issued by the Department of the Treasury last fall for a full-service consultant to New Jersey's multiple investment funds. The firm achieved the highest score in two rounds of candidate rankings following written and oral presentations to the evaluation committee. The award recommendation was then forwarded to Treasurer John E. McCormac, who said today that he has accepted the committee's choice of the firm as the best match for the scope of work described in the RFP.

 Retaining broad, general consulting services was one of the key recommendations of Independent Fiduciary Services, which conducted an operational review of New Jersey's pension investment program last year. The State is also taking steps to implement other recommendations, such as diversifying its portfolio beyond traditional stocks and bonds and into some alternative investments.

 The consultant duties will include assisting the State Investment Council in developing and formulating investment policies, and making comprehensive recommendations concerning asset classes and asset allocation and providing advice on the methodology and timetable for achieving such allocation.

 "New Jersey's consultant services to date have been limited to monitoring and benchmarking performance," said Treasurer McCormac. "While these functions are important, they fall short of what pension funds of New Jersey's size around the country do to keep in tune with the trends and changing paradigms in the financial markets. This full-service general consultant will work side by side with the Investment Division and Council to develop and maintain the best possible investment program for New Jersey," he said.

 Treasurer McCormac termed SIS "an excellent fit for New Jersey's needs," noting that its consultant clients to date have included state plans of similar size and challenges, including CalPERS and New York State Common Retirement Fund, both having total assets in excess of $100 billion.

 The firm's consulting experience also includes the State of Wisconsin Investment Board and the Ohio Public Employees Retirement Fund.

 SIS has agreed to comply with any and all disclosure and ethical regulations that have been or will be adopted by the Investment Council. SIS has also disclosed that neither the firm nor any of its officers have ever contributed directly or indirectly to political parties or candidates for any public office held in New Jersey.

 The firm is expected to begin its work in the next few weeks.

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