“Stephen has worked in very public roles during his career for organizations where transparency and resiliency are essential,” said CalPERS Chief Executive Officer Marcie Frost, in an April 2 news release. “He brings not only a wealth of investing knowledge to the job, but he also has the temperament to understand the needs of our members and public sector employers who depend on CalPERS to be a steady, long-term partner.”
As chief investment officer for NZ Super Fund, CalPERS said Gilmore has overseen the world’s best-performing sovereign fund, with annual investment returns of more than 12% a year over the past decade.
At CalPERS, Gilmore will oversee a team of more than 300 investment professionals and a portfolio valued at $494.6 billion. His arrival comes shortly after CalPERS’ launch of a sweeping Sustainable Investments 2030 plan, which includes investing $100 billion in climate solutions over the next six years.
In an interview, Gilmore said the position represented an “exciting opportunity,’’ not only because of the sheer size of the pension system but also because of its leadership in sustainable investing and its long-term focus. “California has been a leader in a lot of spaces,” Gilmore said.
He told P&I that a priority will be looking to improve CalPERS’ funding ratio, which was estimated at about 72% as of June 30, rising from 70.9% in 2022, but still reflecting a significant decline from 81.2% in 2021.
“If I look at the amount of active risk that’s being taken through time, it’s relatively low,'' he said. "It's hard to generate a lot of outperformance without taking some active risk, so I will be thinking about that.”
In his first 100 days at CalPERS, “I really want to spend a lot of time listening,” he said. “It’s always very dangerous to have preconceived notions before you actually talk to people.”
Before joining NZ Super in 2019, Gilmore was chief investment strategist at Australia's Future Fund. There, he oversaw efforts such as portfolio strategy, portfolio overlays and investment risk. He has also held senior international positions with AIG Financial Products and Morgan Stanley, as well as assignments with the International Monetary Fund and the Reserve Bank of New Zealand.
“Stephen brings an unmatched knowledge of global investing and managing diverse and high-performing investment professionals,” CalPERS President Theresa Taylor said in the release. “We conducted an exhaustive, worldwide search for a deeply skilled leader to continue our mission of providing retirement benefits to California’s public sector workers, and we are confident Stephen is the right person for the job.”
The annual salary for the position, not including incentives based on fund performance relative to established benchmarks, is $718,750.
