Investment Officer, Public Employees' Retirement System Series

California State Personnel Board Specification

Series established June 2, 1970

Scope

This series specification describes three classifications used in the Public Employees' Retirement System (CalPERS) used for positions performing analysis, research, and oversight work involved with the management of CalPERS investment programs.

Definition of Series

Incumbents holding positions in these classifications perform a wide variety of analytical, research, oversight, asset allocation, and risk management work involved in the evaluation, acquisition, management and sale of CalPERS investments, domestic and international equities, fixed income assets, real estate, and private equity investments. Within an assigned area of responsibility, incumbents gather information from a variety of sources, including investment periodicals, market reporting services, trade magazines, consultants, and broker dealers to develop and maintain current knowledge of investment market conditions and trends; search for new investment opportunities that would add value to the CalPERS portfolio; develop investment policies, strategies, benchmarks, and procedures; gather information on potential investments from a variety of sources, analyze their value and risk, and determine their consistency with established investment objectives and criteria; execute or assist in the execution of investment trades, transactions, and transfers; develop, buy, and sell recommendations and entry and exit prices for specified investments; use forecast models and sophisticated quantitative methods to accomplish a variety of investment forecasting, valuation, risk assessments, and tracking tasks; monitor existing investments for consistency with established benchmarks and objectives; review a variety of financial reports, official filings, and other information on prospective and current investments; exercise CalPERS voting rights as an equity owner and help plan and pursue a variety of initiatives to improve the governance and profitability of corporations represented within the CalPERS portfolio; and review asset allocations and risks within the CalPERS portfolio and recommend changes to correct departures from established allocation and risk parameters.

Incumbents may also assist in recruiting and selecting external investment managers; assist in developing investment plans and objectives for external managers; monitor external investment manager performance for compliance with established parameters for investment type, return, and risk; discuss investment issues and problems with external investment managers and recommend appropriate action, including external manager termination when problems are not resolved; seek and help select external partners for real estate and private equity investments; evaluate and perform due diligence review of potential investment partnerships; structure, negotiate, and revise partnership agreements, seeking legal counsel as needed; monitor performance of investment partners, making on-site visits as appropriate; approve investment partners' plans and approve capital calls from partners; oversee management of environmental and regulatory risks associated with partnership investments; serve on oversight committees for partnership investments, consult with partners on investment issues and problems, and recommend action when problems are not resolved; determine appropriate time for CalPERS departure from real estate and private equity investments; assist in the recruitment and selection of investment consultants; seek investment guidance from consultants and review and report consultant findings and recommendations; and draft or analyze legislative and regulatory proposals affecting CalPERS investment programs.

Incumbents may also prepare a variety of written, statistical, and financial reports, including Investment Committee agenda items, special project reports, reports on investment performance, and correspondence; establish and maintain investment data bases and prepare spreadsheets and other presentations of investment information; review and reconcile various reports on investment transactions and performance; make presentations to CalPERS management, the Board of Administration, Investment Committee, and various other internal and external groups; help plan and present investment workshops; represent CalPERS in a variety of formal and informal settings; answer questions and provide consultation and training within assigned area of expertise; provide leadership, including training, mentoring, project direction, and work coordination for student assistants and other investment officers; establish and maintain effective working relationships with appropriate members of the external investment community, including broker dealers, investment custodians, financial institutions, and investment consultants; and perform other related duties.

Entry Levels

Entry into this series may be at any level in the series.

Factors Affecting Position Allocation

The level, variety, and complexity of assigned investment analysis, research, and oversight work; independence of action and decision-making authority; responsibility for portfolio management, including decision making for the acquisition and sale of investment assets; and leadership provided, including training, mentoring, project direction, and work coordination.

Definition of Levels

Investment Officer I, Public Employees' Retirement System

This is the entry, development, and first working level. At the lower entry levels in this class, incumbents work under supervision performing less complex investment work. As they gain skill and knowledge within their assigned area through the assignment of increasingly responsible and complex work, they are expected to develop the proficiency needed to assist in an increasingly broad variety of investment analysis, research, and oversight work under general supervision.

Investment Officer II, Public Employees' Retirement System

This is the full working level. Under direction, and within an assigned area of responsibility, incumbents perform a full range of average to difficult investment analysis, research, and oversight work, leading to recommendations on a variety of investment actions, including the purchase or sale of investment assets and the selection and management of external investment managers and partners. Incumbents at this level may direct the work of student assistants and interns, and may train other investment officers on subjects within their area of expertise.

Investment Officer III, Public Employees' Retirement System

This is the advanced working and lead level. Under direction, incumbents perform duties that are distinguished from those of lower level investment officers by either (1) an unusually high level of authority to make decisions on the sale and purchase of investments, or (2) significant responsibility for training and coordinating the work of lower level investment officers in a setting where a combination of the size of staff, variety and complexity of the work, and external time demands on the assigned Portfolio Manager requires a lead person for day-to-day coordination, work review, and training.

Minimum Qualifications

All Levels:

The following education is required when non-California state service is used to qualify at any level:

Equivalent to graduation from college preferably with major work in business administration, economics, finance, mathematics, or a closely related field.

Investment Officer I, Public Employees' Retirement System

Either I

Six months of professional experience performing investment analysis or closely related work for a public agency or private financial institution, insurance company, pension fund, endowment fund, investment firm, real estate development and investment firm, or other private corporation or entity having a major investment program. (Experience in the California state service applied toward this pattern must be at least at the Staff Services Analyst, Range A, level.

Or II

Completion of a student internship involving at least 500 hours of investment analysis work involving the management of a large equity, fixed income, real estate, and/or private equity portfolio.

Or III

Possession of a master's degree with major work in business administration, economics, finance, mathematics, or a closely related field.

Investment Officer II, Public Employees' Retirement System

Either I

One year of experience in the California state service performing the duties of an Investment Officer I, Public Employees' Retirement System, Range D.

Or II

Experience: Three years of increasingly responsible investment analysis experience for a public agency or private financial institution, insurance company, pension fund, endowment fund, investment firm, real estate development and investment firm, or other private corporation or entity having a major investment management program. (Possession of an advance degree in one of the fields included above in the education requirement, or a closely related degree; or certification as a Chartered Financial Analyst or other equivalent financial or accounting certification, such as a Certified Public Accountant, may be substituted for one year of the required experience. (Experience in the California state service applied toward this pattern must include at least one year performing the duties of an Investment Officer I, Range D.)

Investment Officer III, Public Employees' Retirement System

Either I

One year of experience in the California state service performing the duties of an Investment Officer II, Public Employees' Retirement System.

Or II

Experience: Five years of increasingly responsible investment analysis experience for a public agency or private financial institution, insurance company, pension fund, endowment fund, investment firm, real estate development and investment firm, or other private corporation or entity having a major investment management program. (Possession of an advanced degree in one of the fields included above in the education requirement, or a closely related degree, or certification as a Chartered Financial Analyst or other equivalent financial or accounting certification, such as a Certified Public Accountant, may be substituted for one year of the required experience. (Experience in the California state service applied toward this pattern must include at least one year performing the duties of an Investment Officer II, Public Employees' Retirement System.)

Knowledge and Abilities

All Levels:

Knowledge of: Investment principles and practices; investment types and the markets and procedures for their purchase and sale; methods and sources of information for analyzing and valuing investments and assessing investment market trends; economic trends, principles, and practices; business organization and practices; accounting principles and practices; statistical and mathematical methods used in the analysis of investments; and computer applications used in investment analysis and modeling.

Ability to: Gather and analyze a wide variety of investment, financial, and statistical data and reach sound conclusions on the value and suitability of investments; maintain current knowledge of investment market trends and developments; apply a variety of investment analysis techniques, including quantitative methods; critically review investment and financial data, paying close attention to detail; review and understand financial statements; compile, organize, interpret, and present written and numerical data; prepare clear and concise written correspondence and reports; make effective presentations; work effectively under pressure and meet deadlines; and establish and maintain cooperative relationships with those contacted in the course of the work, including representatives of investment firms and financial institutions, investment partners and external investment managers, consultants, and other CalPERS staff.

Investment Officer II, Public Employees' Retirement System

Knowledge of: All of the above, and principles of portfolio construction and management; investment styles and strategies; legal and regulatory provisions affecting investment programs and transactions; methods of assessing and managing investment risk; and capital markets and investment financing.

Ability to: Provide comprehensive and definitive recommendations on investment action, based on sophisticated investment analysis technique; negotiate investment transactions, agreements, and fees; find, evaluate, and develop new and innovative investment options and strategies that will add portfolio value; manage competing priorities and work effectively without close supervision; and help prepare and present agenda items to the investment committee of the Board of Administration.

Investment Officer III, Public Employees' Retirement System

Knowledge of: All of the above, and a highly developed knowledge of the investment types, styles, strategies, and analytical procedures within an assigned area of investment responsibility.

Ability to: All of the above, and manage an assigned investment portfolio within prescribed objectives, and identify and effectively execute the trades and transactions needed to comply with established standards for investment type, exposure, risk, and return; and provide leadership to lower-level investment officers, including organizing and reviewing work, directing projects, mentoring, and training.

Special Requirement

All Levels:

Must be able to qualify for a Surety Bond.

Class History

Alternate Range Criteria

Investment Officer I, Public Employees' Retirement System

When an employee first enters State service in the class of Investment Officer I, Public Employees' Retirement System, the employee shall be appointed to the appropriate range in terms of the following criteria. When the requirements for the particular criteria are met and upon recommendation of the appointing power, the employee shall be moved to the appropriate rate in the higher salary range in accordance with Rule 98.3.

Range A. This range shall apply to incumbents who do not meet the criteria for a higher range.

Range B. This range shall apply to persons who have either (1) satisfactorily completed six months of service at Range A; or (2) twelve months of professional investment analysis experience for a public agency or private financial institution, insurance company, pension fund, endowment fund, investment firm, or other private corporation or entity having a major investment management program.

Range C. This range shall apply to persons who have either (1) satisfactorily completed six months of service at Range B; or (2) 18 months of professional investment analysis experience for a public agency or private financial institution, insurance company, pension fund, endowment fund, investment firm, or other private corporation or entity having a major investment management program.

Range D. This range shall apply to persons who have either (1) satisfactorily completed six months of service at Range C; or (2) 24 months of professional investment analysis experience for a public agency or private financial institution, insurance company, pension fund, endowment fund, investment firm, or other private corporation or entity having a major investment management program.

Note: A master's degree with major work in business administration, economics, finance, mathematics, or a closely related field may be substituted for one year of the required experience under Option (2) for any of the above ranges.