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Type of Role: InvestmentsOperations

Experience Level: Analyst/Associate

Location: Tallahassee, Florida

Salary: $71K - $89K

The State Board of Administration (SBA) is primarily an asset management organization responsible for investing state and local government assets. Established by the state’s constitution, its mission is to provide superior investment and trust services while adhering to the highest ethical, fiduciary, and professional standards. As of June 30, 2022, the board had $228.0 billion under management; the largest fund under supervision is the Florida Retirement System (FRS) Pension Plan Fund ($180.0 million). Other major funds include the FRS Investment Plan Fund ($12.8 million), the Florida Hurricane Catastrophe Fund ($12.4 million), and the Local Government Surplus Funds (Florida PRIME) Trust Fund ($17.7 million).

Responsibilities

The Senior Operational Due Diligence Analyst is responsible for reviewing and ensuring ongoing operational due diligence (ODD) on public and private external investment managers. This includes ensuring that tasks geared toward compliance, risk identification, evaluation, measurement, monitoring and mitigation are performed accurately and timely. The position identifies ways to improve processes and identifies areas of operational risk of external investment managers. The position performs complex independent professional work with minimal supervision. The Senior Operational Due Diligence Analyst reports to the Director of Operational Due Diligence.

40% – Ensures that ODD is adequately conducted, evaluated and reviewed on public and private external investment managers

  • Coordinates, prepares for and conducts on-site ODD meetings, by identifying and researching high risk areas and determining appropriate areas of follow-up and high risk consideration in order to compose an ODD report upon completion of the on-site visit for the applicable asset class
  • Participates in virtual ODD reviews with the SBA  consultant(s)
  • Participates in investment manager searches with asset classes to review the manager’s operational controls
  • Identifies and addresses potential operational gaps, risks, and control weaknesses of the SBA’s external investment managers using the FLAME database and other data sources
  • Calculates and reports on external manager firm assets under management exposure to the SBA
  • Performs in-depth analysis of certifications, disclosures, documents, and other data received from external investment managers to evaluate, report and discuss on potential operational risks to the State Board of Administration {SBA), updating the ODD risk assessment as necessary
  • Recommends controls or follow-up to mitigate risk to asset classes when operational weaknesses are identified
  • Advises the Lead and Director of ODD on any operational risks identified
  • Reviews consultant provided ODD reports and investment approval memorandums prior to funding external investment managers for all asset classes to identify and evaluate risk, compliance, and control weaknesses, updates the ODD risk assessment, makes recommendations to the Lead and Director of ODD, and communicates with senior investment officers, Chief Risk & Compliance Officer, and the Deputy Chief lnvestment Officer
  • Reviews credit facility loans for policy and guideline compliance
  • Reviews Manager terminations for policy compliance
  • Prepares the quarterly New Managers report for External Affairs that is posted on the SBA’s website
  • Coordinates with Accounting in monitoring external investment managers/funds when outliers are identified
  • Coordinates with Investment Policy and Analysis to identify managers with issues that may need to be raised to the SBA consultant to obtain input
  • Analyzes investment manager System and Organization Controls reports and evaluates exceptions and determines if escalation or follow-up is needed
  • Participates in both internal and external peer group meetings and discussions to stay abreast of industry best practices and regulatory changes ·
  • Represents the ODD team through participation in asset class external investment manager visits for both existing and potential managers, watch list meetings on external investment managers presented by SBA consultants, various SBA internal governance oversight groups, and in the evaluation and selection of potential external investment managers
  • Maintains the ODD Dashboard providing timely relevant manager/fund/property information
  • Maintains updates and reporting in Backstop for ODD
  • Leads the quarterly SBA Backstop Work Group meeting
  • Assist the Lead of ODD with ODD considerations follow up and priority levels
  • Assist the Lead of ODD in conducting analysis of underlying investments with discretion to ensure policy compliance for investment decisions made by the asset class Senior Investment Officer with discretion and the investment does not go through the contract staffing process

10% – Maintains the Florida Asset Manager Evaluation System (FLAME)

  • Updates FLAME on a daily basis to capture external investment manager data using judgement to determine risk deficiencies or operational gaps and makes recommendations on risk deficiencies or operational gaps to ODD team, Senior Investment Officers and the Deputy Chief Investment Officer
  • Creates user friendly forms used to input data into FLAME
  • Evaluates the data and makes a determination regarding accuracy, if sufficient, or if further follow-up is necessary; makes recommendations
  • on data that needs to be changed, followed-up or verification to the Lead and Director of ODD
  • Registers new managers during the on-boarding process
  • Assists existing managers with system issues

20% – Evaluates and develops reports on External Manager Exposure

  • Provides guidance to the ODD Analyst on downloads of SEC external investment manager data from the SEC website
  • Provides guidance to the ODD Analyst in the evaluation of data validity and reliability to ensure accurate data is collected for analysis and calculation of exposure
  • Provide exposure analysis on outliers and from one period to another

10% – Reviews contracts and analyzes new regulatory rules

  • Reviews contract staffings
  • Analyzes new regulatory rules, identifies those potentially impacting the SBA and works with the business units to implement any necessary changes

10% – Collects ODD Consultant Reports

  • Provide guidance to the ODD Analyst on ODD report downloads for SBA external managers from the Consultant databases, ensuring that the reports are current and for the correct SBA investment manager/fund
  • Works with the ODD Analyst to review ODD reports for any risks that are identified, evaluates criticality of the risk to the SBA strategy, and communicates any areas of concern to the  Lead and Director of ODD
  • Updates ODD report tracking in FLAME that identifies the most recent ODD report for the manager
  • Updates Manager Operational Risk Oversight page with new ODD reports and distribute list to senior investment officers quarterly

5% – Provides support for the ODD team and maintains current industry knowledge

  • Research developments in financial markets that impact external investment managers to foster professional development in ODD
  • Research new and existing external investment manager strategies for both the public and private market environment
  • Recommends new processes to evaluate risk
  • Maintains knowledge of relevant systems to provide oversight of external investment managers
  • Trains team members on FLAME updates, Backstop, Mercerlnsight, Optica, Power BI and other related systems
  • Collaborates with ODD and other SBA staff in the development of data collection, assumptions, methods, models, and reports

5% – Performs other duties as assigned

Qualifications

Eight years of related experience. A postsecondary degree may be used as an alternative for years of direct experience; 2 years for an associate’s degree, 4 years for a bachelor’s degree, 6 years for a master’s degree, 7 years for a professional degree, or 9 years for a doctoral degree.

Preferences:

  • A bachelor’s degree from an accredited college or university in finance, accounting, business, management information systems, mathematics, economics
  • Certified Public Accountant certificate from the Florida State Board of Accountancy, Certified Internal Auditor (CIA), or Chartered Financial Analyst (CFA) credential
  • Experience with one or more of the following: operational due diligence, investment related compliance, auditing, or systems automation
  • Ability to travel

Knowledge, Skills and Abilities:

  • Knowledge of industry best practices for controls, policies, and procedures
  • Excellent organizational skills including the ability to effectively prioritize tasks, consistently produce accurate work, meet deadlines and to provide detailed documentation that supports processes and results
  • Strong computer literacy (with emphasis on MS Excel, database applications and reporting) and analytical skills (including attention to detail, accuracy and efficiency)
  • Skill in communicating effectively, both in writing and orally
  • Skill in monitoring and maintaining quality control standards
  • Skill in understanding business processes and identifying and assessing risk
  • Ability to develop, plan, and implement short- and long-range goals
  • Ability to manage multiple projects and tasks simultaneously and demonstrate flexibility necessitated by changing priorities
  • Ability to use logic and reasoning to identify the strengths and weaknesses of alternative solutions and to apply professional judgement in making decisions and taking action
  • Ability to exercise initiative and work independently
  • Inquisitive nature that leads to independent research
  • Travels frequently to various locations throughout the United States and internationally. Involves work outside of normal business hours and working remotely to maintain contact with other external investment managers and maintains normal office-related duties

Hiring Range: $70,900 – $89,000

The State Board of Administration is an Equal Opportunity Employer

Successful completion of a pre-employment background check is a condition of employment with the State Board of Administration