DTE Energy Investment Chief Leaves for OCIO

Paul Cavazos has joined American Beacon Funds as CIO, and will focus on corporate pension plans and growing the mutual fund business.

Paul Cavazos1Paul Cavazos, CIO, American Beacon FundsDTE Energy CIO Paul Cavazos is exiting after nearly nine years at the utility firm.

The outgoing investment chief is joining American Beacon, an outsourced-CIO and mutual funds-of-funds based in Irving, Texas, the firm announced Wednesday. Cavazos will relocate and begin his new post as CIO on June 20.

He will be responsible for corporate pension plan investments as well as overseeing American Beacon’s funds. The firm, a spin-out of American Airlines’ treasury office, managed $51.4 billion as of March 31.

“Paul’s comprehensive background leading defined benefit plans of varying sizes, conducting investment manager searches, due diligence, and risk control oversight make him an excellent fit to the evolving business needs of American Beacon,” the firm’s President and CEO Gene Needles Jr. said.

At DTE, Cavazos managed six distinct portfolios—including defined benefit and defined contribution plans, a foundation, and a nuclear decommissioning trust—totaling $10 billion. 

A move to American Beacon ends Cavazos’ 20-plus year career as an asset owner, including jobs with Navistar, Boeing, and Chrysler. He also belongs as a working group member to corporate pension industry group CIEBA (Committee on Investment of Employee Benefit Assets). 

“To be able to join one of the leading sub-advised mutual fund firms and be an integral part of achieving the firm’s growth objectives were very appealing to me,” Cavazos said about joining American Beacon.

DTE lost Cavazos’ deputy Kevin Kenneally last July to the Fisher Group, a family office for the Max M. and Marjorie S. Fisher family.

According to his LinkedIn, however, Kenneally left his new position as director of investments just five months later.

Related: DTE Deputy Leaves for Fisher Family Office & Class of 2014: DTE Energy