Institutional Investor is recognizing three Visionary leaders of the public funds space this year for their leadership, innovation, and active participation. David Braham, Senior Executive Director, Thought Leadership & Market Intelligence, Institutional Investor, sat down with Cheryl Alston, former Executive Director & Chief Investment Officer at the Dallas Employees’ Retirement Fund.
Cheryl Alston is a collaborator. During her 20 years at ERF, she managed a $4.0 billion investment program for the public pension fund which included asset allocation and manager selection. She also led the pension administration process for 15,000 members.
Cheryl has an M.B.A. in Finance from the Leonard N. Stern School at New York University and a B.S. in Economics from the University of Pennsylvania. She has served as an executive with CIGNA Retirement & Investment Services and as a Corporate Banking Officer at Chase Global Services.
Today, Cheryl serves on several corporate boards. She was named as one of the most influential corporate directors by Women Inc. Magazine and by Savoy Magazine. Cheryl D. Alston is an independent director on the board of Globe Life Inc. (NYSE – GL), an insurance holding company. She also serves on the boards of Blue Cross Blue Shield of Kansas City, and Janus Henderson mutual fund board.
Cheryl received a Presidential Appointment to the Pension Benefit Guaranty Corporation (PBGC) Advisory Committee and served two terms from 2011-2016. She has also served as an independent director of the Federal Home Loan Bank of Dallas from 2016-2021.
Cheryl demonstrates a strong commitment to the community through her service on various nonprofit boards and foundations, including CHRISTUS Health, The Arts Community Alliance (TACA), and the Dallas Mavericks Advisory Committee.
With II, she shared the biggest changes and surprises during her time at ERF, the funds she would consider best-in-class, and what advice she would give.
The following is edited for length and clarity.
When you started 20 years ago, what did you expect?
I loved the mission of the Dallas Employees’ Fund and the goal to provide a secure retirement for hardworking civilian employees of the City of Dallas. As Executive Director and Chief Investment Officer, I managed every aspect of the organization from investments, finance, and pension administration.
You left in the last 12 months, and politics has changed a lot in the last 12 months.
Although politics at the federal level has changed, the leadership at the City of Dallas did not change. The Fund has great relationships at the local and state level, so the Fund is able to accomplish its goals.
What is the biggest surprise from the last 20 years?
The biggest surprise and joy from the last 20 years is the appreciation I receive from members. To this day, members will walk up to me and say, “Thank you for your service. I feel good that my retirement is safe.” For people to continue to stop me after I have left is one of my proudest moments.
What would you change about the public pension system today?
I have two recommendations focused on board member selection and staff compensation. A best practice used by corporate boards is having a skills matrix, so you have a board that has different areas of expertise. I think organizations that have a mix of experts can have robust discussion of the issues and make faster decisions.
The second recommendation is another best practice of compensation studies to determine pay for staff.
As you look around the world, what is the best-in-class institution out there when it comes to running an investment office? Where do you look?
Some of the Canadian pension funds are doing a lot of innovative things. They have created an ecosystem where they can invest by experimenting thoughtfully, funding new companies, and investing in different sectors.
One of the things that’s changed a lot in the last 30 years is alternatives and private equity. Has it delivered on the promise?
Private equity delivered on the promise by funding new companies that have transformed our economy. Many of the famous global brands are due to a private equity investor believing and investing in the vision.
Your successor was your deputy. What advice would you give her?
My deputy CIO worked with me for a long time, so she knows my advice. My advice is focus on the long-term, quality investments, and quality people.
Sitting across from your managers, what advice would you give them?
My advice is to stay true to your philosophy and process and invest in your people.
20 years as CIO of Dallas: What is the best story?
Dallas ERF has a wonderful supportive culture from the board to the staff. Some of the best stories are how people went above and beyond in the best interests of the members.
Everyone pitched in and helped during the good and the bad times.
This piece has been edited for length and clarity.
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