March 31, 2023
Dear PPI Community:
I am pleased to present the 2022 Annual Report of the Pacific Pension & Investment Institute (PPI), which memorializes the impactful programs and unique experiences delivered to our members this past year. The report also illustrates our community’s resilience as we transitioned to primarily in-person convenings with a virtual option available to expand our reach.
The PPI Board of Directors and Management Team sincerely thank everyone who contributed to PPI last year. You showed your support by joining or renewing your membership; speaking and participating in programs; sharing topic and speaker ideas; serving on the board, committees, and planning groups; offering your organization’s resources; introducing member prospects; and myriad other ways.
Many of the challenges that defined the investment environment of 2022 linger today. Central bank concerns about inflation, their policy directions on interest rates, and the probability of recession remain (and have been heightened by the 2023 banking crisis). Russia’s war in Ukraine has crossed the one-year mark with no end in sight. It will continue to impact global energy markets and food security while driving up prices and inflationary pressures. China’s abrupt reversal of its zero-COVID policy will have economic and investment implications domestically and globally.
Against this backdrop is the continued attention on pragmatic ways to implement and invest in the energy transition. The institutional investor community is also contending with the politicization—especially in the United States—of environmental, social, and governance (ESG) issues and the need for a more nuanced and thoughtful approach. The tech sector has widespread turmoil and uncertainty, while the promise of fintech and other innovative technologies will continue to advance.
I look forward to working with you to expand our reach and positively contribute to our communities.
Sincerely yours,
Lionel C. Johnson
President
PROGRAMS
In 2022, PPI transitioned to primarily in-person convenings and returned to Asia for the first time since October 2019.
The Winter Roundtable in Westlake Village, California, was convened in a hybrid fashion. As business travel resumed and members demonstrated their strong desire to reconnect, we prioritized the in-person experience at the Summer Roundtable in Vancouver, Canada, our Executive Seminar (a fully in-person program), and the Asia Pacific Roundtable in Singapore. All speakers participated in person, and a virtual option was available for roundtable attendees who could not join physically. We also continued offering multiple opportunities for the PPI Community to convene through virtual salons between roundtables.
Russia’s invasion of Ukraine on February 24, 2022—the first day of the Winter Roundtable—brought geopolitical risk to the fore and impacted PPI’s program discussions throughout the year. The war amplified PPI’s members’ concerns about inflation, the energy transition, the global food and agriculture supply chain, the shifting world order, and the unusual global macro events late in the year. Other topics addressed in 2022 included the strategic importance of semiconductors, the potential of Web3 and the metaverse, the effects of sanctions on the international financial architecture, developments in the Arctic, investment themes in China and India, Southeast Asia’s growth opportunities and innovation economy, and the investment case for diversity, equity, and inclusion.
We also expanded our programmatic partnerships with other organizations. The Council for Inclusive Capitalism, the United Nations Foundation, Asia Society Northern California, and the National Association of Investment Companies organized roundtable sessions and salons.
Click below for the
2022 Programs Retrospective
MEMBERSHIP
The composition of PPI’s membership changed in 2022, with more owner/allocator members (52) and fewer manager/advisor members (50) in the fold. However, the overall number remains strong, and today, PPI boasts 102 organizations as members. In recent historical context, PPI counted 113 organizations as members in 2019 as the pandemic descended, 105 members in 2020-2021, and 102 last year. Our membership is leaner, though equally dynamic, and poised to grow in 2023.
We are redoubling efforts to meet members where they are. In addition to a recent trip to Riyadh and Abu Dhabi, PPI management will spend two weeks in Tokyo, Hong Kong, Seoul, and Beijing in June 2023. The management team is also looking forward to PPI In Residence; our week in Montreal will include a salon and reception on May 23. We have worked closely with our members to organize the week and are excited by the prospect of the week’s dual mission: member engagement and team building.
PPI remains an important resource for its membership. As we have done so for three decades, we convene annually and rigorously explore key issues facing investors, perennial and emergent. Those discussions have educated and informed a generation of leaders. A new imperative has surfaced after observing an uptick in leadership transitions across the industry. PPI aims to be a resource for tomorrow’s senior leaders while serving our member organizations today. The Leadership Lab, a new program, will offer our global community’s combined wisdom and experience to the next generation of executives. It will also expose future PPI members to the community today.
PPI Members on December 31, 2022
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Alberta Investment Management Corporation
Alberta Teachers’ Retirement Fund
Australian Retirement Trust
AustralianSuper
BCI
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
CN Investment Division
Columbia Investment Management Company, LLC
DBJ Americas
First Swedish National Pension Fund – AP1
Florida State Board of Administration
FM Global
Fremont Group
Future Fund
GIC Private Limited
Government Pension Fund, Thailand
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 Railroad Retirement Investment Trust
New Zealand Super Fund
New York State Teachers’ Retirement System
NewYork-Presbyterian Hospitals Investment Office
NIIF Limited
Ontario Power Generation
Oregon State Treasury
PKA
PSP Investments
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
Utah Retirement Systems
Washington State Investment Board
West Virginia Investment Management Board
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Actis
Affinity Equity Partners
Amundi
Angelo, Gordon & Co.
Antler
Ascendent Capital Partners
Asia Alternatives Management
B Capital Group
Bridge Investment Group
Bridgewater Associates
Brookfield Asset Management
Campbell Lutyens & Co.
Capital Group
CDH Investments
China International Capital Corporation, US
Creaegis
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
IFM Investors
Jasper Ridge Partners
Joy Capital
JP Morgan Asset Management
M&G Investments
Meridiam
Mitsubishi Corporation
Morgan Stanley
Nikko Asset Management
Ortec Finance
PGIM
Power Sustainable
Qiming Venture Partners
Quantum Advisors
RockCreek
Sagard Holdings
Siguler Guff & Company
Silicon Valley Bank Capital
Sit Investment Associates, Inc.
Sumitomo Mitsui Trust Asset Management
Synergy Fund Management Group
The TCW Group
Tokio Marine Asset Management Co.
Unison Capital
Wellington Management Company
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Ronald E. Bornstein
John Campbell
Margaret Carpenter
Ambassador Chas W. Freeman Jr.
Ta-lin Hsu
Takeshi Kadota
Robert Maynard
Doug Pearce
Shelley I. Smith
Garrett Walls
Theresa J. Whitmarsh
Ambassador Linda Tsao Yang
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Oliver Bolitho
Derek Brodersen
Howard Chao
Barry Gonder
Sandra Haas
Howard L. Hull III
Adiba Ighodaro
Takajiro Ishikawa
Shigeki Kimura
Joseph Konzelmann
Wayne Kozun
William Lee
Arthur Mitchell
Ambassador Clark T. Randt
Angela Rodell
Catherine Savage
Kazuo Seki
Ambassador Paul W. Speltz
Peter H. Sullivan
James Timmins, Sr.
Conrad Yan
Yuelin T. Yang
LEADERSHIP
The year 2022 was a challenging but rewarding one for PPI. Despite the pandemic’s ongoing effects, we gradually resumed in-person roundtables, thanks to the collaboration and dedication of our board of directors and management team.
Our board of directors provided strategic guidance and oversight throughout the year, ensuring that PPI’s mission and the interests of the PPI Community were aligned. They supported our management team in implementing appropriate health and safety protocols, ensuring the organization’s financial stability, and engaging with the membership to maintain the vitality of the PPI Community.
Our management team worked diligently to plan and execute PPI’s full slate of programs and initiatives that brought members together meaningfully. They adapted to the changing circumstances and leveraged technology and innovation to create hybrid and virtual options when necessary. They also communicated regularly with our board of directors and members, soliciting feedback and input to improve our services and offerings.
We are proud of what we accomplished together in 2022 and are on track to build on this momentum in 2023. We thank our board of directors and management team for their leadership and commitment, and we appreciate the support and participation of our community members.
PPI Leaders on December 31, 2022
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Gordon Bajnai
Kevin Bong
Derek Brodersen
Jeb Burns
Ajit Dayal
Mark Delaney
Ted Eliopoulos
Marcie Frost
Robert Maynard
Leon Meng
Laura Nashman
Sheila Patel
Marlene Puffer
Angela Rodell
Catherine Savage
John D. Skjervem
Allyson Tucker
Ton van Welie
Lincoln Webb
Osamu Yamamoto
Conrad Yan
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Angela Rodell, 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
The PPI Management Team fully adopted a Constellatory Model of Organization and Culture. The team works wherever we are and comes together in person at scheduled times. The model captures our way of collaborating and communicating in all aspects of our work, increasing the quality of life and productivity, both collectively and individually. This model acknowledges the quality interactions that connect the various parts of the organization and are not limited to being in the same physical location. Our team mirrors how the members of the PPI Community shine wherever they are, then come together at roundtables.
Coinciding with this model, PPI officially vacated its office at 465 California Street, San Francisco, CA, marking the end of an era. The team received our first guests at our new home at 95 Third Street, San Francisco, CA, marking the beginning of a new one!
FINANCE
PPI had an aberrational FY2022 posting an operating deficit of $131,634. While disappointing, the deficit was manageable, especially in the context of budget surpluses in 2021 and 2022. The shortfall was partly due to the inflationary pressures, the unbudgeted cost of delivering hybrid programs, and the extraordinary circumstances of the past three years, resulting in member attrition and fewer corporate sponsorships. Financial sustainability is a pillar of our mission, and with roundtable registration and prospective members returning to pre-pandemic levels, the organization remains on sound financial footing.
The following Statement of Activities reflects total Revenue and Support of $2,835,596, an increase of $222,515. Total Expenses were $3,017,229, an increase of $584,606 from the prior year. The total change in 2022 net assets is $181,633.
Statement of Activities
For the Year Ended December 31, 2022
With Comparative Totals (USD) for the Year Ended December 31, 2021
| 2022 | 2021 | |
|---|---|---|
| REVENUE | ||
| Membership Dues | 2,379,750 | 2,092,400 |
| Program Registration | 293,527 | 113,991 |
| Investment Income | (31,219) | (6,679) |
| Total Revenue | 2,642,058 | 2,199,712 |
| SUPPORT | ||
| Grant | 18,538 | 383,369 |
| Sponsorships | 140,000 | - |
| In-Kind Donations | 35,000 | 30,000 |
| Total Support | 193,538 | 413,369 |
| TOTAL REVENUE & SUPPORT | 2,835,596 | 2,613,081 |
| EXPENSES | ||
| Program Services | 2,249,752 | 1,685,852 |
| General and Administrative | 767,477 | 746,771 |
| Total Expenses | 3,017,229 | 2,432,623 |
| Loss on refunded contribution | - | (20,000) |
| CHANGE IN NET ASSETS | (181,633) | 160,458 |
| Net assets released from restrictions | 50,000 | - |
| Net assets, beginning of year | 2,427,755 | 2,267,297 |
| Net assets, end of year | 2,246,122 | 2,427,755 |
Hover over the charts to view the percentages
2022 Revenue Sources
2022 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.
Acknowledgements
We are enormously grateful to the consultants with whom we worked in 2022 for their many contributions to PPI’s programs and institutional development: Attorneys Jean Batman and Trent Sutton, Littler Mendelson; Attorney Robert Burlingame, Amplitude IP; Gabe Ross, Global Policy Initiatives; Amanda Schlank, Caroline Judy, Nanaz Benyamini, and Raymond Eng, (CPAs), SingerLewak; Joel Horsager, West Coast Productions; Rilee Erickson, Belay; Liz Williams, Williams Corporate Events; Dr. Martha Summerville, Summerville Consulting; Mitchell Hughes, Beacon Pointe; Amber Rhoton and Nicole McKamie, Amplified HR; 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 2022!