Quick answer
As Chief Investment Officer of APS Pension & Financial Services and APS Investment Management in Melville, New York, Steven J. Musmanno oversees the firm’s investment strategy, sets asset allocation policy for its risk-based portfolios, leads portfolio management and oversees day-to-day trading for institutional retirement plans and wealth management clients.
What a Chief Investment Officer is responsible for
At APS, the Chief Investment Officer role covers four areas:
- Investment strategy. Overseeing the firm’s overall investment approach.
- Asset allocation policy. Setting policy and direction for all APS Investment Management risk-based investment portfolios.
- Portfolio management and trading. Leading portfolio management and overseeing day-to-day portfolio trading and operations.
- Fiduciary oversight. Serving as Chairman and Chief Fiduciary of the APSIM Fiduciary Investment Committee.
Risk-based model portfolios
A risk-based model portfolio is a pre-built mix of investments designed around a level of risk, from more conservative to more growth-oriented. In a retirement plan, models can give participants a simpler way to choose an allocation that fits their comfort with market swings, instead of building a portfolio fund by fund. APS Investment Management builds and manages risk-based model portfolios for the defined contribution plans it serves.
Models have limits. A model reflects general risk levels rather than each person’s full financial picture, it can still lose value, and the allocation inside it changes over time as the manager rebalances or adjusts it. The article risk-based model portfolios in retirement plans covers how they work in more detail.
How a committee process supports investment decisions
Investment decisions for the institutional fiduciary business run through the APSIM Fiduciary Investment Committee, which Steven chairs. A committee structure brings more than one view to each decision and creates a written record of what was decided and why, which matters for plan sponsors who need to show a prudent process. Decisions are measured against each plan’s investment policy statement.
Wealth management for individuals and business owners
Through APS Wealth Management, LLC, an SEC registered investment adviser that Steven co-founded, the firm manages portfolios for individuals and businesses. Steven oversees the investment policies and accounts of wealth management clients. For business owners, the company retirement plan often sits at the center of that work. Steven sees the qualified plan as a tool for tax management, wealth creation and diversifying business equity risk, a topic covered in using the company retirement plan for tax management and wealth creation.
Background behind the role
Steven began his career at Merrill Lynch in New York City, providing equity portfolio strategy to high-net-worth clients before rising to Vice President of Institutional Research Marketing. He holds an MBA in finance from NYU Stern School of Business and the Accredited Investment Fiduciary Analyst (AIFA) designation. See his full experience and education.
Key takeaways
- Steven J. Musmanno sets investment strategy and asset allocation policy as CIO of APS and APSIM.
- APSIM builds and manages risk-based model portfolios for retirement plans, overseen by a fiduciary investment committee that Steven chairs.
- All investing involves risk, including loss of principal; no portfolio approach guarantees results.
Frequently asked questions
What does a Chief Investment Officer do at a retirement plan firm?
The CIO sets the investment strategy and asset allocation policy, leads portfolio management and oversees how investment decisions are made, documented and carried out.
Are model portfolios right for every participant?
Not necessarily. Models are built around general risk levels. Participants with other assets, different time horizons or specific needs may want a different approach, and should review plan materials or speak with a qualified professional.
Where does Steven J. Musmanno work?
At the APS Pension & Financial Services office in Melville, New York.