Your opinions needed

Currently, I am working at a large corporation (fortune 100). The benefits are great, the pay is good, and my title is Investment Analyst. Currently, I oversee ~$2.5B in cash and ~$1B in retirement funds. The downside is that I feel completely underused. I’m buying T-bills and money funds. The firm has never heard of asset allocation or diversification, and is totally afraid of any risk outside of Treasuries. There is an opening at a local public body to manage their funds. I’m looking for feedback from those who have worked in the public sector. What’s the culture like? Is it more BS? I’m guessing that it is, but want to confirm this before I send in my resume. I’m planning on sitting for Level 1 in December. I already have my MBA and 5+ years of experience managing money. There are not very many opportunities in my area to manage investments, so I was thinking this might be a good place to park myself for a couple of years while I sit for the exams. Thanks in advance.

I have no experience in the public sector, but that just sounds like a bad move to me. I think you might have a hard time coming back in to the private sector at a later time after making the transition.

well, good luck pitching your treasurer on increasing credit risk in your funds after 2H07! their strategy probably outperformed, you should be happy they didn’t let you buy ABCP! trust me. can’t help you on the public sector question though, sorry.

ABCP is statistically almost as low risk as AAAA++++. Almost…

Big Nodge, Thanks for the feedback. However, I was never one of those who drank the coolaid with ABSCP. I’ve always managed by the mantra that if you can’t explain it to your investment committee, you shouldn’t buy it. Too bad the managers of the Florida State Pool didn’t take the same approach. Your point about the conservative strategy is well taken. Treasuries certainly have outperformed, especially with the stock market selling off on the jobs data today. But I would imagine that many Corporates that have both duration and credit constraints will be hurt with the Fed lowering rates in the near-term, as expected interest income decreases and budgets are hurt as a result. IMHO, now is the time to be looking at high quality corporate debt (A+ or better) and/or callable agencies to increase yields, seeing as how spreads have widened out from their lows. Your thoughts?