Under the administrative direction of the Chief Executive Officer, and the policy direction of the Board of Administration’s Investment Committee, the Chief Investment Officer (CIO) manages the Fund’s investments and is responsible for the management and oversight of both the administration and investment functions of the CalPERS Investment Office, which includes but is not limited to: managing the fund’s investments; advising the Board on asset allocation and the development of new and innovative investment strategies; implementing approved investment strategies and policies; leading a team of 350 multi-disciplinary investment professionals with 7 direct reports; establishing work flow and priorities and ensuring that investments earn returns above established benchmarks. The CIO must possess the investment acumen, experience, and knowledge to work with and gain the confidence of the CEO and CalPERS Board of Administration’s Investment Committee, and to implement prudent strategies to fulfill CalPERS mission.
The CIO will be an integral leader in a large, diverse organization that administers pension benefits and purchases health care for 2 million members, and deals with a wide array of financial, economic, policy and administrative issues. The CIO is a critical member of the Executive Team for a highly visible and complex government organization and must have the skills to build and maintain cooperative relationships. The ideal candidate will be goal-oriented, organized and can carry out a complicated, highly visible, fast-paced, multi-faceted role with poise, integrity, and grace. Excellent communication skills are essential, as is transparency.
In addition to evaluating each candidate's relative ability, as demonstrated by quality and breadth of experience, the following factors will provide the basis for competitively evaluating each candidate:
- The CIO must be an experienced and respected institutional investment professional with strong knowledge of global economic principles and trends, and their impact on diverse investment programs; investment vehicles and markets, including equities, fixed assets, real estate, and alternative investments.
- Experience must include managing both internal investment strategies as well as external managers separately or within a fund-of-fund environment.
- The CIO should possess a strong understanding of asset allocation, as an alpha generator and diversifier, across multiple asset classes. There should also be an understanding of the derivation of alpha for a $400+ billion portfolio within the context of a strong risk management culture.
- CalPERS has adopted a set of Investment Beliefs that include, among other items, a focus on effective cost management. The CIO must embrace a philosophy and strategy that are aligned with the Investment Beliefs.
- The CIO must have a visionary/strategic approach and be able to establish, articulate, and implement clear priorities and processes for meeting the strategic goals of CalPERS, including management of a dynamic investment strategy moving forward.
- The CIO must have considerable experience managing, leading and motivating a large professional staff, and the ability to foster a collaborative working environment across the asset classes.
- The CIO must have experience developing and managing staff development and motivation through progressive training, and a multifaceted compensation strategy that fosters teamwork.
- The CIO must also possess the collaborative skills to coordinate with the Actuarial Office and the Financial Office on asset liability management, such as maintaining adequate funding to pay promised benefits is CalPERS’ primary measure of success.
- The CIO must have demonstrated prudent risk management and ability to instill sound risk management principles as guides to decision-making throughout an organization.
- The CIO must have experience in investment management operations with some knowledge of systems applications.
- The successful candidate must have demonstrated a commitment to diversity throughout his/her career.
- The CIO must demonstrate leadership through integrity and accountability.
- The CIO must gather and analyze a broad range of economic and investment information and synthesize it into concise and coherent conclusions and recommendations to internal and external stakeholders.
- The CIO must evaluate a broad variety of investment options and reach prudent investment management decisions; adapt effectively to changing market conditions; maintain up-to-date knowledge of economic and investment trends and ideas and use that knowledge to develop and implement innovative investment strategies.
- The CIO must effectively promote equal opportunity in employment and maintain a work environment that is free of discrimination and harassment. He/she must promote equal opportunity in hiring and promotional development of employees.