2021 ANNUAL REPORT
of the Pacific Pension & Investment Institute
March 23, 2022
Dear Friends and Members:
I am pleased to present the 2021 Annual Report of the Pacific Pension & Investment Institute (PPI). This report highlights PPI’s dedication, creativity, and perseverance through another challenging year. I am immensely grateful for the steadfast support of PPI's members, who stood by us during a difficult period and embraced our adoption of new technology in service of our mission. Your commitment to our community is deeply appreciated, and we strive daily to earn that support and justify your faith in our efforts.
While this Annual Report is a retrospective of a year fraught with challenges, we also made great strides in 2021 to establish a foundation for future growth. The PPI network is a vibrant ecosystem for exchanging ideas, where members continuously learn from one another through open and honest dialogue. Our community grew even stronger over the past year, anchored by a shared commitment to this central purpose.
Our collective influence is derived from a broad range of perspectives. They can result in a powerful impact that extends beyond the investment world and into our society. As we continue to navigate a challenging operating environment, I look forward to working with you to expand our reach and to make positive contributions to the communities in which we operate.
Visit the tribute page
In 2021 we lost our beloved Founder, Larry Hull. I know that he is smiling down upon us, gratified that we carry on in the institutional spirit and culture he created and nurtured. Please join me in thanking PPI's Management Team, which met this moment with courage and a pioneering spirit. They are unique and dedicated professionals, and it is an honor to serve with them to advance the critical work that lies ahead.
Sincerely yours,
Lionel C. Johnson
President
PROGRAMS
PPI introduced a hybrid convening model in 2021, blazing yet another trail as we have throughout the pandemic. While most organizations opted for an either-or experience, the inclusive nature of the virtual option proved invaluable for an organization with many members located in places with varying restrictions on travel.
PPI delivered a range of programs in 2021 that included two virtual roundtables, several salons, and our inaugural hybrid convening in Pasadena, California. As the pandemic progressed into its second year, the PPI Community continued to convene regularly. It addressed several pressing concerns and trends for institutional investors, such as inflation, the commodity supercycle, supply chain bottlenecks, central bank digital currencies, the global energy crunch, the impact of net-zero initiatives in developing economies, diverse and inclusive human capital, opportunities versus risks of doing business in China, and Asia’s multipolarity.
Our innovations in 2021 included an expanded suite of programs, the launch of a leadership development series to engage a cohort of future executives within our membership, and the incorporation of next-generation perspectives into our roundtable sessions. Convening virtually allowed us to recruit a broader range of speakers worldwide, and technology remained key to bridging our members remotely. This was particularly evident at our Asia Pacific Roundtable in October. We delivered a first-in-class hybrid program experience with opportunities for physical and virtual attendees to interact meaningfully.
MEMBERSHIP
It is clear how much our members value PPI and all we offer. Members regularly stress the importance of knowledge sharing and the importance of a culture that invites interaction and builds community. The tribulations of the past two years have borne out this value, and our membership is poised to propel us to new heights in 2022.
PPI ended 2021 with 103 member organizations, including 51 asset owner/allocator members and 52 asset manager/advisor members. We will resume a smart-growth approach to membership in 2022, balancing the diversity of voices in the room alongside the number of organizations in the fold. Our members provide the intellectual capital PPI thrives on and the financial resources we depend on. PPI’s members are the lifeblood of our mission, our primary source of revenue, and our raison d'être.
PPI Members on December 31, 2021
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Alaska Permanent Fund
Alberta Investment Management Corporation
Alberta Teachers’ Retirement Fund
AustralianSuper
BCI
British Airways Pension Investment Management Ltd.
British Columbia Pension Corporation
CAAT Pension Plan
California Public Employees’ Retirement System
California State Teachers’ Retirement System
Carnegie Corporation of New York
Cascade Asset Management Company
Cbus
Citizen Investment Trust, Nepal
CN Investment Division
Columbia Investment Management Company, LLC
Creaegis
Development Bank of Japan
Employees Provident Fund, Nepal
First Swedish National Pension Fund – AP1
Florida State Board of Administration
FM Global
Fremont Group
Future Fund
GIC Private Limited
Government Pension Investment Fund - GPIF
Hassana Investment Company
Hong Kong Monetary Authority
Los Angeles County Employees Retirement Association
Margaret A. Cargill Philanthropies
Minnesota State Board of Investment
Municipal Employees’ Retirement System of Michigan
National Council for Social Security Fund, People’s Republic of China
National Pension and Provident Fund, Bhutan
National Railroad Retirement Investment Trust
New Zealand Super Fund
NewYork-Presbyterian Hospitals Investment Office
NIIF Limited
Ontario Power Generation
Oregon State Treasury
PKA
Public Employee Retirement System of Idaho
QIC
San Francisco Employees’ Retirement System
San Jose Retirement System
Seattle City Employees’ Retirement System
South Dakota Investment Council
State of Wisconsin Investment Board
Teacher Retirement System of Texas
Teachers' Retirement System of the State of Illinois
The City of New York Office of the Comptroller
Third Swedish National Pension Fund – AP3
Washington State Investment Board
West Virginia Investment Management Board
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Actis
Affinity Equity Partners
Afina International
AllianceBernstein
Angelo, Gordon & Co.
Antler
Apollo Global Management
Ascendent Capital Partners
Asia Alternatives Management
B Capital Group
Barings
Bridge Investment Group
Bridgewater Associates
Brookfield Asset Management
Campbell Lutyens & Co.
Capital Group
Cartica Management
CDH Investments
China International Capital Corporation, US
Equilibrium Capital Group
Federated Hermes
FountainVest Partners (Asia)
Franklin Templeton
Goldman Sachs Asset Management
GroveStreet
Guggenheim Partners
Hamilton Lane Advisors
Hayfin Capital Management
Hillhouse Capital
IFC Asset Management Company
Institutional Real Estate, Inc.
Jasper Ridge Partners
Joy Capital
JP Morgan Asset Management
Meridiam
Mitsubishi Corporation
Morgan Stanley
Nikko Asset Management
Ortec Finance
PGIM
Power Sustainable
Quantum Advisors
RockCreek
Sagard Holdings
Siguler Guff & Company
Silicon Valley Bank Capital
Sit Investment Associates, Inc.
Sumitomo Mitsui Trust Asset Management
Sustainalytics
Synergy Fund Management Group
Tokio Marine Asset Management Co.
Unison Capital
Wellington Management Company
William Blair
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Ronald E. Bornstein
John Campbell OBE
Margaret Carpenter
Ambassador Chas W. Freeman Jr.
Ta-lin Hsu
Takeshi Kadota
Doug Pearce
Shelley I. Smith
Theresa J. Whitmarsh
Ambassador Linda Tsao Yang
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Oliver Bolitho
Derek Brodersen
Howard Chao
Barry Gonder
Sandra Haas
Geoffrey A. Hirt
Howard L. Hull III
Takajiro Ishikawa
Shigeki Kimura
Joseph Konzelmann
Wayne Kozun
Arthur Mitchell
Ambassador Clark T. Randt
Angela Rodell
Catherine Savage
Kazuo Seki
John D. Skjervem
Ambassador Paul W. Speltz
Peter H. Sullivan
James Timmins
Conrad Yan
Yuelin T. Yang
LEADERSHIP
There has been a noticeable strengthening of PPI over the past two years. As we explored a variety of platforms and virtual venues together, the notion of convening became more intentional, and members seized opportunities to connect in ways previously unimagined. “Community time” became a staple of the PPI experience, and it was tightly integrated into our enhanced and expanded programming. It all required a higher level of commitment, one our members were all too willing to provide. With their support and your guidance, PPI thrived.
The support provided by PPI’s Board is rivaled only by the stability and continuity of our management team. Our governance structure is enviable and speaks to each director and team member's commitment to PPI. This structure was tested again in 2021 in previously unimaginable ways. The results were impressive, emblematic of a community that draws from the best and brightest and a board reflective of that membership.
PPI Leaders on December 31, 2021
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Gordon Bajnai
Kevin Bong
Derek Brodersen
Jeb Burns
Ajit Dayal
Mark Delaney
Ted Eliopoulos
Marcie Frost
Robert Maynard
Laura Nashman
Sheila Patel
Marlene Puffer
Angela Rodell
Catherine Savage
John D. Skjervem
Allyson Tucker
Osamu Yamamoto
Conrad Yan
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Angela Rodell, Chair
Jeb Burns, Immediate Past Chair
Mark Delaney, Vice Chair
Conrad Yan, Secretary
Derek Brodersen, Treasurer
Lionel C. Johnson, President
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Lionel C. Johnson, President
James F. Apostol, Vice President & Chief Operating Officer
Gwen Bough, Executive Assistant
Sabina Ong Gotuaco, Finance & Administration Director
Piin-Fen Kok, Senior Program Director
Shu Li, Program Director
Evie Fong, Program Manager
Mark Conrad Mancao, Chief of Staff
OPERATIONS
Various terms have emerged over the years to describe businesses comprised primarily of knowledge workers that do not conform to the traditional office model. We commonly call them fully or partially “remote” or “distributed” teams. These terms connote a situation with members detached from their core, adrift in isolation. Yet, many such teams are successful and achieve benefits that cannot be derived from a collocated model. The members of these teams are empowered to shine wherever they may be working. Rather than resemble a traditional hub-and-spoke diagram, these teams look more like constellations of stars with interconnected clusters and nodes.
It is toward this constellatory model that the PPI Management Team transitioned in 2021. The constellation metaphor speaks to our commitment to empowering us to shine wherever we are and ensure that the threads that connect the team are distinctly PPI (our culture).
FINANCE
PPI outperformed financial expectations and achieved a net surplus of $160,458 in 2021. The favorable variance is due to several factors, including a second grant from the U.S. Small Business Administration’s Paycheck Protection Program (PPP), diligent member-retention and recruitment efforts, and relentless expense monitoring. However, the timely determination of PPI’s eligibility for the U.S. Internal Revenue Service’s Employee Retention Tax Credit tipped the scales well in our favor. PPI earned a $183,149 credit that refunded our share of Social Security tax on qualified wages in 2020 and 2021.
Meanwhile, the investments we made in technology continue to pay dividends, dwarfed only by those reaped from our reinvestment in our fantastic management team. We will rely heavily on both this year and beyond, cultivating dynamic and compelling programmatic content and fostering the PPI culture for our members. Our financial performance mirrored the resourcefulness displayed by our team and our members during a challenging year.
The following Statement of Activities reflects total Revenue and Support of $2,613,081, a decrease of $953 or almost at par from the prior year. Total Expenses were $2,432,623 a decrease of $106,279 or 4% from the prior year. The total change in 2021 net assets is $160,458.
Statement of Activities
For the Year Ended December 31, 2021
With Comparative Totals (USD) for the Year Ended December 31, 2020
| 2021 | 2020 | |
|---|---|---|
| REVENUE | ||
| Membership Dues | 2,092,400 | 2,075,450 |
| Roundtable Registration | 113,991 | 175,786 |
| Executive Seminar Registration | - | - |
| Investment Income | (6,679) | 36,098 |
| Total Revenue | 2,199,712 | 2,287,334 |
| SUPPORT | ||
| Grant | 383,369 | 226,700 |
| Contributions | - | 70,000 |
| In-Kind Donations | 30,000 | 30,000 |
| Total Support | 413,369 | 326,700 |
| TOTAL REVENUE & SUPPORT | 2,613,081 | 2,614,034 |
| EXPENSES | ||
| Program Services | 1,685,852 | 1,777,748 |
| Support Services | 746,771 | 761,145 |
| Total Expenses | 2,432,623 | 2,538,893 |
| Loss on refunded contribution | (20,000) | - |
| CHANGE IN NET ASSETS | 160,458 | 75,141 |
| Net assets without donor restrictions, beginning of year | 2,267,297 | 2,192,156 |
| Net assets with donor restrictions, end of year | - | 75,141 |
| Net assets without donor restrictions, end of year | 2,427,755 | 2,267,297 |
Hover over the charts to view the percentages
2021 Revenue Sources
2021 Expense Allocation
The financial information presented is from the audited financial statements. Interested parties can obtain a complete copy of the audited financial statements by contacting our office.
Our Statement of Beliefs on
DIVERSITY, EQUITY, AND INCLUSION
The Pacific Pension & Investment Institute (PPI) is committed to advancing diversity, equity, and inclusion (DEI) within our organization and in the global institutional investor community. We believe that DEI strengthens organizations, and PPI benefits from a diverse and inclusive management team, board, and membership. Likewise, our member institutions are strengthened when they are more representative and inclusive.
Diversification goes beyond portfolios. For institutional investors, diversifying portfolios is a given. The same principle applies to diversifying teams. DEI enhances the stewardship of capital. As controllers of large pools of capital, our members can influence meaningful improvement in DEI.
Actions matter more than words. For this reason, PPI encourages the exchange of actionable ideas. And there is value in a global conversation. PPI helps our international community to consider DEI in the context of different parts of the world, reflecting the global nature of the asset management industry and the institutional investor community. We believe that PPI can play a unique role in facilitating discussions and inspiring actionable ideas for promoting this critical set of issues.
Acknowledgements
We are enormously grateful to the consultants with whom we worked in 2021 for their many contributions to PPI’s programs and institutional development: Attorneys Gary Bethel and Laura Devane, Littler Mendelson; Attorney Robert Burlingame, Amplitude IP; Gabriel Ross, Global Policy Initiatives; Jeremy Dillard, Andrew Armstrong, Ver Pasamic, Nanaz Benyamini, and Raymond Eng, (CPAs), SingerLewak; Joel Horsager, Sound Advice; Bruce Webster, Don’t Wonder production; Liz Williams, Williams Corporate Events; Dr. Martha Summerville, Summerville Consulting; Mitchell Hughes, Beacon Pointe; Han Yik, Strategic Focus Investment; Amber Rhoton and Nicole McKamie, Amplified HR; Dan Hernandez, Professional Computer Support; Jonathan Kaufmann and Rebecca Altman, Third Plateau.
Once again, we thank you, our loyal members and friends, for your steadfast support of PPI and our important mission, throughout 2021!