UPDATE: Nicholas Maiale, who has resigned after 22 years as chairman of the $25 billion Pennsylvania State Employees' Retirement System, speaks up about the Anthony Clark investigation, State Treasurer Rob McCord's demand that Gov. Tom Corbett replace Maiale, how manager selection worked when Ed Rendell was Governor, and why, after investing billions, Maiale 'soured on hedge funds', in my column here in today's Philadelphia Inquirer here. (If you're not a subscriber by now, you can read the story this week by typing in code F47S). #inq
Nicholas Maiale, the South Philly lawyer and ex-state representative who has chaired the $25 billion Pennsylvania State Employees' Retirement System since 1992, is giving up the post, acording to a letter Maiale sent Gov. Corbett.
Maiale told Corbett "the SERS Board and staff has done an outstanding job" and is "secure" despite long-term "underfunding." He made no reference to the resignation of his chief investment officer, Anthony Clark, after an internal investigation into Clark's conduct was disclosed earlier this month and State Treasurer Rob McCord called on Corbett to replace Maiale for not disclosing the investigation earlier.
SERS has not announced Maiale's move and Corbett has not named a replacement. Maiale oversaw SERS' diversification from old-fashioned bond and stock investments into one of the leading U.S. buyers of high-fee venture capital, real estate, buyout, hedge and commodity funds under Govs. Casey, Ridge, Schweiker, Rendell and Corbett; as Maiale noted in his letter to Corbett, that wasn't enough to keep the fund's obligations from expanding faster than its assets in recent years.