→ Leadership Under Pressure: Allocators don’t often get arrested, but these aren't ordinary times. Federal agents detained NYC Comptroller and ACA finalist (in the category of leadership no less) Brad Lander on Tuesday after he asked to see a warrant for an immigrant they were attempting to detain; you can read the details and watch the video here.

State Comptroller Thomas DiNapoli, sole fiduciary of the $273 billion New York State Common Retirement Fund, called Lander’s arrest “a clear abuse of power” and “dangerous path for our nation” (Gov. Kathy Hochul had some other… choice words).

After hearing the news, I went to Foley Square in downtown Manhattan where demonstrators had gathered to protest after word got out that Lander had been arrested. Following his release a few hours later, the mayoral hopeful and principal fiduciary of the city’s pension plans told demonstrators: “I am happy to report that I am just fine,” before adding: “I lost a button.”

Lander told the crowd that he doesn’t “have to worry about” his “due process rights,” as opposed to the immigrant(s) detained by ICE agents when he was placed into custody. I would say that Lander has certainly justified his place among the nominees for II’s Leadership of the Year Award.

This is part of an increasing trend of the federal government going after elected officials like Newark Mayor Ras Baraka or California Sen. Alex Padilla. Lander reiterated this point in a press conference held the following day that Trump was targeting immigrants and Democratic elected officials to “distract from his hideous legislation” that will defund cities and take healthcare away from millions of people.

What does all of this have to do with allocators? Well, investing is all about stability and protecting beneficiaries’ retirement checks. But with the federal government looking to raise taxes on endowments, pull foundations’ nonprofit status, and impose anti-ESG mandates on pensions, that stability is under attack on multiple fronts.  Even beyond the amorphous uncertainty markets are facing at the moment, these attacks are affecting how allocators will manage their portfolios. See my story on how global investors are pulling back from sustainable investing amid the pushback. 

After Trump won the White House, I wrote that the beneficiaries of these assets, which include immigrants and the LGBTQ+ community, would see seismic changes in their lives. Though granted, my bold prediction was in line with the campaign’s promises.

While the role of an allocator is technically a political one — Lander is literally a politician, after all — it was not designed to be overtly politicized. Of course, most allocators don’t run for mayor. But the White House is deliberately making that impossible by antagonizing endowments, state plans, and now foundations. And while some allocators have been trying to lay low and not cause any unwanted attention to their operations, that may not be a viable option for many, since institutions, public officials, fiduciaries, and pension beneficiaries will all need to adjust strategies and expectations.

Anyway, that’s it for me this week. I’m sure y’all have thoughts on this one, so send them my way, even if they’re spicy (I can take it). Enjoy the weekend and stay safe out there.