Apreciada familia de NAA,
We started 2022 full of energy with new goals, new initiatives, and new governance. On January 28, the NAA Inc. Board of Directors elected its new leadership.
In addition to the January meeting, the Board will convene throughout the year -- April 29, July 29, and October 28 -- to conduct the business of the organization. However, you are welcome to contact me directly if you have any questions, suggestions, and/or wish to learn more about a particular program, committee, or initiative. I urge you to become involved in many of these activities and/or join a committee. My heartiest congratulations to all elected and re-elected directors and officers -see below.
Now, a high note for our organization happened at the 15th Annual Emerging Managers & MWBE Conference, where New York State Comptroller DiNapoli presented a proclamation to the New America Alliance in recognition of the organization’s achievements, partnership, and service. He wished us continued success in years to come -see Proclamation below. On behalf of the NAA family, I thank Comptroller DiNapoli and all the New York Common Retirement Fund team for this recognition and for the strong partnership we have enjoyed over the years.
We are very proud that NAA members played an important part in the Conference as speakers – they did a fantastic job representing us. My congratulations to:
- Tammy K. Jones, Co-Founder & CEO Basis Investment Group, LLC
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Monika Mantilla, President & Chief Executive Officer, Altura Capital
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Robert Azeke, Managing Partner, Farol Asset Management
- André Rice, President & Founder, Muller & Monroe Asset Management, LLC.
Also, cheers to our Treasurer, Ricardo Bekin, and his firm Ativo Capital. The Ativo team is once again, one of three finalists in the 2021 Emerging Manager of the Year Awards –Small Cap category– from Emerging Managers Monthly. The Ativo Capital team, led by Ricardo Bekin, is most definitely one of our Best in Class – well done!
Our sister organization, Diverse Asset Management Initiative (DAMI), has been conducting an annual survey of investment consultants. Their 2021 report – the fourth one in this series -- is attached for your perusal. The report concludes that progress has been made, perhaps not at the pace most of us want, but progress nonetheless. I applaud Robert Raben, Executive Director of DAMI, and the 16 investment consultant firms who responded to the survey. Through transparency, they are eliminating artificial barriers Latinos, women, and people of color often encounter in the financial services industry. As I have said before, all we need is an opportunity to demonstrate that we can deliver the returns. Once these biases are torn down, once we have a fair opportunity, then the numbers will take care of themselves.
Lastly, I did not want this month to end without a heartfelt allusion to Black History Month, which is celebrated every February in the United States. This year’s observation of Black History Month also comes with a personal story you might enjoy. Read on!
Un abrazo, y a continuar trabajando!
Solange F. Brooks
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We are pleased to announce our newly-appointed NAA Board of Directors and Officers.
A big thank you to Gerson R. Guzman, Co-Founder, Ceiba Capital Partners, for leading us as Chair of the Board for the past three years. He is succeeded by Gabriel J. Rodriguez, who has served as our NAA Institute Chair for one year and has been a member of NAA since 2013. He is a Founding Member and Partner of Empiric Institutional LLC.
For details of the NAA Inc. and NAA Institute Board of Directors, please see: NAA Inc. Board HERE and NAA Institute Board HERE.
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NAA Voices
Solange F. Brooks, NAA CEO
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Black History Month: Frederick Douglass, Buffalo Soldiers, and
Charles Mingus
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Black History Month is traditionally celebrated in February, and thus, will soon be coming to a close. It is a short month. However, there is still time to celebrate, learn, and commemorate Black excellence and history. I have heard of traditions in families where books are read, or movies are watched, and then the family takes time to discuss and learn more about Black history and culture. A friend, and NAA member, gave me a book to read that started this personal tradition in my bookish family -- Frederick Douglass: Prophet of Freedom by David W. Blight – which I highly recommend.
But, this year, Black history came to me in a very personal way. I found out that my hometown in Arizona celebrates the Buffalo Soldiers of the Old West -- 1890s and early 1900s -- with a parade, speeches, a remembrance ceremony at the town cemetery where some are buried, and a dinner dance. A 3-day tribute. I never knew that. It was not covered in my Arizona history classes. The Buffalo Soldiers were Black soldiers so named by the Native Americans of the time. Some historical accounts say that the nickname was due to the soldier’s dark curly hair resembling the fur of the buffalo, other accounts say that they were named so due to the way the soldiers fought so valiantly and fiercely that the American Natives revered them as they did the mighty buffalo.
In the early years of Arizona history, the Buffalo Soldiers, stationed in Ft. Huachuca, had a camp in my hometown – Camp Little. The Camp was actually in the neighborhood where my mother’s house is now situated. These soldiers served the town in keeping the peace, protecting, and guarding the town folks from horse thieves, cattle rustlers, and bandidos. Remember that Arizona did not become a state until 1912. Before that my hometown was part of the Gadsden Purchase of 1854 and – along with Tombstone – was very much a part of the Old West.
Another personal connection with Black history is a monument that was created to celebrate the accomplishments of a “local boy that made good” – his name was Charles Mingus Jr. and he was born in my little Arizona hometown. Mr. Mingus was a jazz pianist, composer, and bandleader. But all of you jazz lovers already know that. His memorial in the town cemetery was decorated by local artists – my cousin included among them.
Celebrate Black History Month by learning more about the culture and its history. You will be surprised what you may find out in your own backyard, and how we are all better off with the knowledge gained.
How will your family honor Black History Month?
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Best in Class
Ativo Capital
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Last year Ativo Capital was named Emerging Manager of the Year in the International Small-Cap Equity category. Now, for the second year in a row, Ativo Capital is one of the three finalists for the same award.
The nomination as a finalist was the result of a quantitative screening process utilizing data from Informa PSN, and three finalists were selected for each of seven different categories: domestic large-cap, mid-cap, and small-cap equity, international equity, international small-cap equity, emerging markets equity, and domestic fixed-income. Each contestant submitted year-end 2021 data to Informa PSN by Jan. 24, had at least $10 million in product assets and had full-year 2021 performance figures, as well as 2020 year-end product asset information. Firm-wide assets for non-minority- and women-owned firms were capped at $2 billion, while MWBE equity managers with up to $10 billion were considered, and all MWBE fixed-income managers were considered.
Ativo will compete with two other finalists, and the winner will be selected after careful consideration by a panel of expert judges. Congratulations to the Ativo Capital Team!
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Blue Chip
Andre Rice, Founder and President, "M2"
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Andre Rice, Founder, and President of "M2"
Interview with Susana G Baumann, NAA External Communications Adviser
What do music and investing have in common? "Music is the perfect metaphor to describe the science and art of investing," asserts Andre Rice, Founder and President of M2—better known as Muller & Monroe Asset Management, LLC. Based in Chicago, Rice founded the firm in 1999.
Born in New Jersey but raised in South Carolina, Rice begged his grandmother to let him take piano lessons at age 10. Band was not taught at the black schools during segregation, however, several years later, when the schools were integrated, the African American students had their first opportunity to join the school's band. Ken Creekmore, one of Rice's first white teachers, was the band director and loved jazz. Mr. Creekmore was an influential teacher who only cared about your character, hard work, and talent; it was a true meritocracy as the best musicians were selected for the jazz band. It is not surprising to learn that Rice has a profound fascination with music. "Unlike sports and war, which are about winning or losing, music is about creating something of lasting value. As a great band creates timeless music, we are creating long-term value for our clients, which will benefit generations to come," the company's website pledges.
This refreshing view of how to creatively do business in a hardline industry is supported by an organizational culture of relationship building and the principles of integrity, excellence, and loyalty. "We are not the largest firm, but we try to be the best. We have many competitors who are substantially larger. With $1.3 billion AUM, our firm is on the smaller end of that group," Rice explains.
The recently elected New America Alliance Inc. Board Director believes he can bring a different perspective on topics from entrepreneurship to discrimination, given his long tenure in the industry. "I think there needs to be a very close collaboration between Hispanics, African Americans, Asians, and other groups that have historically suffered discrimination. We share the same goals. One of the best ways to collaborate is to support each other's organizations," he affirms.
"Given my age and childhood spent in the segregated South, I think I have a different perspective on racism than others might have. Racism is very complex, we don't all see it the same way, and we don't all agree on how to address it."
Rice has prioritized hiring a diverse team of dedicated professionals in his firm. "We sought diversity before ESG was a hot topic because I value different opinions on any subject. No matter how much we become alike, I think people are different because of life experiences. We come at problems and see things differently, and I want to have all those voices around the table. It is not only the right thing to do, but it is also the smart thing to do," he explained.
M2 is now a little over 20 years old, and they are at a critical inflection point. "We have produced some of the best performance ever, and we have a very cohesive group of 'band members.' We've learned how to play well together and produce beautiful music, which in investing means stellar returns on the assets we invest. We are poised to grow significantly over the next several years," he said.
Rice wants New America Alliance members to know that M2 is open to all professionals. "People's religion, skin color, ethnic origin, and their sexual orientation are not the first characteristics we consider when we invest money. However, we do have special mandates, from time to time, where we look at emerging minority and women-led firms. These are mandates we execute on behalf of our clients. We only discriminate when it comes to honest versus dishonest, good performance versus bad performance. Okay… (smile) and nice people versus bad people," he concluded.
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Team Member Spotlight
Jonathan Mzengeza, Portfolio Manager, Applied Research Investment
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Applied Research Investment announced it has hired Jonathan Mzengeza as Portfolio Manager as of February 14. Mzengeza will report to Amira Strasser, who founded the firm in 2016 and serves as CEO and co-head of the investment strategy committee. She now shares the latter role with Alexandra Jarislowsky, currently a strategic advisor for the firm.
Applied Research Founder and CEO Amira Strasser said, “We are thrilled to welcome Jonathan Mzengeza as a Portfolio Manager. He is committed to our firm’s investment philosophy and process. Jonathan brings significant talent, both in terms of his broad knowledge of the capital markets, as well as deep expertise in the technology and consumer sectors. Jonathan’s team-based approach will not only ensure a great fit with our culture but help drive portfolio performance for our clients.”
Mzengeza brings more than a decade of experience in investment management, guiding portfolio management, and stock selection across multiple global equity mandates. Before joining Applied Research, he served as the lead portfolio manager of the Renaissance Global Science and Technology Fund and the CIBC Global Technology Fund. Under Mzengeza’s leadership, these funds have received three consecutive Lipper awards. Furthermore, he has experience researching other sectors which include Communications, Financials, and REITs. Prior to joining CIBC Asset Management, he worked as an analyst at Chubb Insurance Company, researching and analyzing business and system technology needs.
Jonathan Mzengeza said, “I am excited to join the Applied Research team and its collaborative
culture which incubates a diverse group of talent. Applied Research’s disciplined investment
philosophy, based on fundamental bottom-up research and focused on the preservation of capital and alpha generation, is one I share and embrace. My plan is to use my expertise and knowledge to drive consistent performance with best-in-class risk-adjusted returns. I’m looking forward to working in such an entrepreneurial, dynamic environment on a growing platform with great potential.”
Mzengeza holds an MBA degree from Concordia University, where he participated in the
Investment Management Program. He obtained a Bachelor of Science degree in Electrical and
Computer Engineering from the University of Cape Town, where he graduated with honors. He is a CFA charter holder and a member of the CFA Society.
For additional information click here.
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NAA Strategic Partners
DAMI Report
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As we reflect on 2021, we are heartened by the progress that has been made but also concerned by the pace at which it is occurring.
On the bright side, it is becoming harder and harder for firms to ignore diversity. Over the past year, we’ve seen more pressure from lawmakers to improve diversity, new research about the importance of diversity, and more clients pushing firms to release detailed demographic data.
But as this study confirms, real progress is moving at a snail’s pace. Many firms, endowments, foundations, and other institutional investors are still reluctant to release their data. And while there have been commitments to diversify, the actual demographic figures have barely budged. What’s more, research shows that most asset owners believe they must choose between financial gains and incorporating diversity -- a misconception that has been debunked by studies time and time again.
We have hurdles to overcome, but change is happening -- and it cannot be stopped. We would like to extend a thank you to the firms who have participated in our survey this year. But we remain disappointed by the firms that didn’t respond. Diversity is a priority, and it’s not going away.
Robert Raben,
Executive Director
To download the report, click HERE
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Los Angeles City Employees’ Retirement System (LACERS) has issued an RFP ad for PRIVATE CREDIT CONSULTANT SEARCH
The Los Angeles City Employees’ Retirement System (LACERS), a $24 billion public pension fund, seeks proposals from qualified organizations to provide consulting services for a private credit program that has a 5.75% target allocation with $300 million dollars in current commitments. The scope of services will include strategic portfolio advice, policy development and program structuring, sourcing and monitoring investments, portfolio reporting, and education.
Emerging consultant firms are encouraged to apply. The RFP document, which details the minimum qualifications respondents must meet in order to be considered, will be available on the LACERS website on January 24, 2022.
The deadline for submitting proposals is 5:00 P.M. PT on March 25, 2022.
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NAA supports matching high-quality professional talent with institutions across the United States. SEE CAREER OPPORTUNITIES HERE. Interested candidates, please reference New America Alliance in your application and notify Jodi Towner at jtowner@naaonline.org once submitted so we may be aware of your candidacy.
Employers, you may submit information on current high-level and high-impact job vacancies to Jodi Towner at jtowner@naaonline.org.
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