Institutional Investor is proud to recognize leaders within the allocator community for their outstanding contributions to portfolio development at the second annual AlphaEdge Recognition Dinner. Prior to the event, we sat down with Cheryl Alston, recognized in the category of Visionary of the Year.
Cheryl is a true collaborator as the Executive Director and Chief Investment Officer of the Dallas Employees' Retirement Fund. Since she joined the $3.6 billion public pension fund in October 2004, she has provided leadership for the Fund’s staff to execute benefits, investments, financial and communication programs necessary to achieve the mission, goals, and objectives for the fund’s 15,000+ members. Cheryl is responsible for the investment program which includes the investment program’s policy statement, asset allocation and risk management, manager selection and monitoring.
Cheryl has over 25 years of expertise in the financial services industry. She served as an Executive with CIGNA Retirement & Investment Services. Prior to CIGNA, Cheryl has served as a Corporate Banking Officer at Chase Global Services, providing investment banking services for Fortune 500 clients. 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.
The following has been edited for length and clarity.
What is the biggest challenge facing the industry today?
The two biggest challenges facing the asset management industry are the rise of artificial intelligence and the war for talent. Asset managers and institutional investors are still in the beginning stages of learning how emerging technologies are going to impact the ways in which we work. In addition, we are also researching how to best invest in AI in both public and private vehicles. I believe there is a wealth of opportunities in this space.
The second challenge is the war for talent. In the asset management industry, it is a challenge to attract, develop and retain the right talent. Although compensation is important and we must stay competitive with the industry, I do not believe compensation is the only factor. Other important factors are training and development, leadership opportunities and culture. Dallas ERF has a culture of “Results Oriented, Life Friendly.” It allows my employees to have work/life balance, which has improved retention. Institutional investors are actively developing policies to adapt to this new environment.
Do you think the younger generation understands the value of public service?
The younger generation wants to feel that their work makes a difference, but I do not think it is just limited to Millennials or Gen Z. Most people of all ages want to feel that their work is making a positive impact. Public service is an honorable career. I believe young employees struggle with the bureaucracy that slows down the implementation of good ideas. It is our job as employees to make sure all employees know how their roles contribute to the mission and to manage efficient organizations.
Which part of your portfolio gets you most excited?
Private credit is at an interesting turning point. The macro environment is at an inflection point with the future of interest rates and the banking sector’s role in this environment. Some managers have raised sizeable funds, so it will be interesting to see how they navigate this landscape.
Who were your mentors and what made you get this job?
One of my mentors is Kneeland Youngblood, who is the founding partner of the Pharos Capital Group. He was one of the first people I met when I moved to Dallas. Kneeland and the other Dallas ERF board members believed in my ability to serve as both Executive Director and Chief Investment Officer of this organization, and they have been extremely supportive.
If you were not in investment management, what would you be doing?
I would be the CEO of a foundation or a company because I like all aspects of the position. I like creating a strategic plan and then managing the execution of the plan. I enjoy working with a board of directors and hiring a great team.
What is the one tangible thing you would like to change about this industry?
I would like the asset management industry to be more inclusive. Over my tenure, I have heard many opinions. One CIO told me that his daughter did not understand financial topics, so he did not think women should be leaders in this field; I had a female executive tell me that she delayed having children because she thought it would negatively impact her career trajectory; I also had a discussion with a founder of a large hedge fund who did not have women in any investment positions.
In each situation, I was able to engage them in a constructive conversation about leadership, culture, and inclusion. Some people will ask if discussions on inclusion are still necessary, and my response is yes. For example, I completed a panel discussion at a conference and a woman, whom I had never met, approached to thank me. She was one of the newest female employees at the hedge fund that I mentioned. She told me there was a reference to the conversation I had with the founder in the company: Although he never said anything to me, he heard me and made changes at his company. Now, she and other highly qualified women and diverse people are in the asset management industry. I believe inclusion is key to a dynamic investment ecosystem.
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