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CalSTRS CIO highlights succession moves and five-year performance above the 7% target
Summary
CIO Scott outlined retirements and promotions in the investment division, promoted several senior directors, and said the fund produced a five-year annualized return of 8.5%, exceeding the 7% target and adding value for beneficiaries through the collaborative model and strategic allocation shifts.
CalSTRS Chief Investment Officer Scott used his report to highlight succession planning, recent retirements, promotions and multi-year performance.
Scott named two retirees in the investment division (Glenn Hosokawa in fixed income and Paul Shantek in inflation-sensitive assets) and recognized their multi-decade service. He announced five promotions and new or interim appointments including Joon Kim (senior investment director, Total Fund Management Division), David Murphy (director of global equity), Rosie Lucchini Jack (director of fixed income), Charles Fitzpatrick (interim director of inflation sensitive) and Sally Stocks (senior portfolio manager, real estate).
On performance, Scott focused on long-term measures: the fund's five-year annualized return was 8.5%, exceeding the CalSTRS 7% actuarial/investment target and the fund's benchmarks by an annual average value-add he estimated at 77 basis points per year. He attributed performance to strategic asset allocation (shifting public-market exposure to private-market and alternatives), the collaborative model, and internal manager selection. Scott also discussed risk posture, noting that about 76% of the fund's risk is directed to growth assets and that staff has preserved liquidity while building leverage capability and widened asset bands to increase tactical flexibility.
Scott said his highest near-term priority is managing the leadership transition and preserving investment culture through mentorship and internal development; he also said staff will continue to monitor liquidity, leverage policy and allocation execution and report back as needed.
