Meet the CIO: Andrew Junkin
Chief Investment Officer Andrew Junkin joined VRS in September after an extensive national search. He most recently served as chief investment officer in Rhode Island, managing a team that oversaw the state’s $10.5 billion pension plan, a $2 billion defined contribution plan and other funds. Junkin previously worked for Wilshire Consulting for 15 years and served as president for the last five years. Prior to joining Wilshire, he served as senior consultant and president of Asset Services Co. in Oklahoma.
In a recent interview, Junkin talked about his new role, moving to Virginia and how he likes to unwind.
What draws you to the work of managing investments for a public pension plan?
The mission of the organization and the dedication of the team to help provide safe and secure retirement benefits for Virginia’s public employees is what motivates me and what I enjoy most.
What impresses you most about the VRS investment team?
The VRS investment team is really tremendous, and the talent that we have here in Richmond is talent that I would stack up against anywhere in the U.S.
I came in with really high expectations and I’m pleased to say they have exceeded those expectations.
A new CIO is a big change. How will you manage this transition?
I think the opportunities for VRS on the investments side are well established. The portfolio is well positioned, and I’ll continue the focus that’s currently in place. We have an upcoming asset allocation study in 2023 that we’ll use as an opportunity to continue to build on the success of the organization and our strengths going forward.
Why is it important for public pensions to focus on the long term and diversify assets?
The benefit payments that we eventually owe current participants are also long term. At the same time, we have current retirees that are depending on checks monthly. The balance of the portfolio needs to consider both sets of beneficiaries, and diversification is the key to mitigating short-term risks but providing long-term returns.
What should members and retirees bear in mind about public pensions when they hear about big swings in the market or troubling economic news?
It’s important for members to realize that we are very diversified and long- term focused. It’s sometimes easy to get wrapped up in today’s news or market movement, but we’re thoughtful about managing risk in the organization.
As you get settled in the Richmond area and carve out a free weekend, what are you looking forward to exploring?
I’ve been focused on getting to know the area and have enjoyed checking out the local restaurant scene. I’m looking forward to exploring other parts of the state, like the beaches and mountains.
How do you unwind?
Both of my kids play competitive hockey, so I spend a lot of my free time attending practices, hockey tournaments or streaming their games.
What lesson did you learn early on that has most shaped your life and career?
My grandfather used to say, “Do something, even if it’s wrong,” which I think is not meant to be taken literally. The lesson I took is that it’s not often a good idea to let the perfect be the enemy of the good. There’s a way to make progress and refine as you move toward the perfect. But start solving the problem and refine as you go.
