Institutional Investor is recognizing three Visionary Leaders in 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 Jeb Burns, Chief Investment Officer of the Municipal Employees’ Retirement System of Michigan (MERS).
Jeb Burns is a dedicated steward of retirement security for Michigan's public servants. As Chief Investment Officer of MERS, one of the 200 largest pension funds in the United States, Burns leads a 10-member investment team responsible for overseeing the organization's investment strategy and implementing its investment programs on behalf of more than 1,000 participating municipalities across Michigan.
At MERS, the mission is clear: to provide a secure retirement for the public employees who serve Michigan communities every day. Those members include firefighters who answer emergency calls, nurses who care for residents, public works employees who plow roads in the middle of winter, police officers who help keep neighborhoods safe, and countless other municipal workers whose service keeps local communities running.
As a fiduciary, Burns and his team are entrusted with safeguarding and growing retirement assets on behalf of these public servants. That responsibility informs every investment decision, balancing long-term growth with prudent risk management to ensure benefits promised today can be delivered decades into the future.
Burns entered the investment industry in 1989 as a financial advisor with Prudential before moving into public service the following year. He spent more than 15 years serving the State of Michigan and Michigan State University before joining MERS, where he has now spent 25 years helping build one of the nation's leading public pension investment programs.
Throughout his career, Burns has distinguished himself through strategic leadership, public policy expertise, and innovative approaches to improving organizational effectiveness. He currently serves as Vice Chair of the National Association of State Investment Officers (NASIO), Board Member of Sunshine Silver Mining and Refining Corporation, and Chair of the Advisory Board for CG Financial Services. In 2017, he co-founded the West Michigan Global Initiative, which helped facilitate the State of Michigan's first official trade mission to the Netherlands.
Burns spoke with Institutional Investor about how the investment industry has evolved, what success looks like in public pension management, and the responsibility that comes with investing on behalf of Michigan's public workforce.
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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