The Rise of Alternative Assets and Illiquidity Premiums

In this episode of Valley Investors, host Nathan Erickson welcomes Mark Steed, Chief Investment Officer at the Arizona Public Safety Personnel Retirement System (PSPRS). Mark shares his journey from Michigan to Arizona, delving into his background in Latin American studies and his experience in microfinance. The discussion highlights the unique aspects of pension management, the challenges of asset allocation, and the integration of AI in investment decision-making. Listeners will gain insights into the evolving role of pension funds, the importance of community engagement, and the future of finance.

Key Discussions in This Episode:

[00:01:08] Mark's background and journey to PSPRS

[00:02:14] Microfinance and poverty economics

[00:04:11] The role of PSPRS as a pension system

[00:07:26] Differences between pension plans and other institutional investors

[00:08:25] The importance of assumed returns in pension systems

[00:10:14] Innovations at PSPRS and the Allocators Choice Award

[00:11:59] PSPRS's decision-making process and internal culture

[00:18:51] Asset allocation and portfolio construction at PSPRS

[00:24:43] The impact of liquidity on investment strategies

[00:31:12] Institutional approaches to alternative investments

[00:37:01] Democratization of alternative investments

[00:47:38] The role of AI in pension management and investment decisions

[00:50:15] The importance of community engagement for PSPRS

[00:52:07] Mark's commitment to Arizona and its community

Links:

PSPRS

Mark Steed on LinkedIn

Nathan Erickson on LinkedIn