Is TPA a new idea or a new name? Beyond the Acronyms: LACERA’s Jon Grabel on Holistic Portfolio Management

How did LACERA stay positive in fiscal 2022 when most pension funds were down—and what does their "functional framework" have to do with it?Some nvestment consultants are promoting Total Portfolio Approach (TPA) as the next evolution in institutional investing. But what if sophisticated asset owners have been doing this work all along—without the capital letters? Jon Grabel, CIO of Los Angeles County Employees Retirement Association (LACERA), joins the show to discuss how his team manages $90 billion for 200,000 active and retired members using what he calls a "total fund approach" (lowercase, thank you very much). Jon explains why he's skeptical of buzzwords and how LACERA's functional framework has delivered proof points through multiple market cycles. What We Cover Why capitalizing "TPA" may overcomplicate what sophisticated plans already do LACERA's functional framework: Growth, Risk Mitigation, Real Assets, and Credit How LACERA's team structure mirrors its investment structure to break down silos Culture Day: One day per month with no manager meetings, focused on team development Investment committee structure where every vote is equal (CIO votes last) The role of benchmarks in accountability vs. marketing Governance evolution: Education, board delegation, and investment beliefs as policy Competition within teams (public vs. private equity) rather than between teams Why knowing your prospect's name matters (seriously, get this right) Jonathan Grabel is Chief Investment Officer at Los Angeles County Employees Retirement Association (LACERA), where he manages the $90 billion defined benefit pension fund and oversees investments for LACERA's retiree healthcare benefits program serving approximately 200,000 active and retired members. Prior to LACERA, Jon was CIO at New Mexico PERA, overseeing the $15 billion defined benefit fund. Previously, he was a general partner at a private equity firm focused on growth-stage technology investments and worked as an investment banker and licensed CPA. Jon holds a Bachelor of Science in Economics from Wharton and an MBA from the University of Chicago Booth School of Business.In This Episode: (00:00) Jon Grabel, CIO at LACERA managing $90 billion (04:05) Setting the stage: What is total portfolio approach (05:59) Why capitalizing letters overcomplicated sophisticated asset owner work (13:06) Competition within teams versus between teams at LACERA (19:05) Building culture through monthly culture days and healthy debate (26:16) Benchmarks as accountability tools versus marketing purposes (30:28) Worst pitch: When firms confuse your organization's name Like, subscribe, and share this episode with someone who might be interested, and please take time to leave us a review! Dr. Angelo Calvello is a serial innovator and co-founder of multiple investment firms, including Rosetta Analytics and Blue Diamond Asset Management. He leverages his extensive professional network and reputation for authentic thought leadership to curate conversations with genuinely innovative allocators. As the "Dissident" columnist for Institutional Investor and former "Doctor Is In" columnist for Chief Investment Officer (winner of the 2016 Jesse H. Neal Award), Calvello has become a leading voice challenging conventional investment wisdom. Beyond his professional pursuits, Calvello serves as Chairman of the Maryland State Retirement and Pension System's Climate Advisory Panel, Chairman of the Board of Outreach with Lacrosse an... Chapters (00:00:00) - The Institutional Edge: TPA With John Grable(00:01:54) - Le Serra President John Feuerstein(00:03:48) - TPA(00:06:21) - LERA Board Member on Total Fund Approach(00:11:11) - No. 1: Competition for Capital(00:16:25) - Le Sara Investment Company's Transition to a Total Fund Approach(00:19:05) - Lesara CEO on His Hiring and Culture(00:26:23) - Private Equity and Public Equity: Factors(00:28:41) - Pensions and the Functional Framework(00:30:25) - The Worst Sales Pitch Ever Heard