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CalSTRS names first chief operating investment officer-Reuters

(Reuters) – The California State Teachers’ Retirement System on Friday named its first chief operating investment officer, completing a restructuring of the pension fund’s investment branch.

Debra Smith will assume the position of CalSTRS’ COIO. The pension fund also named Glenn Hosokawa as Director of Fixed Income, the funds’ second largest asset class, at $22.4 billion. Paul Shantic was named Director of Inflation Sensitive, the newest and smallest asset class with an investment portfolio at $1.4 billion.

The three appointments complete a new organizational structure that allows the pension fund to bring more assets in-house, CalSTRS Chief Investment Officer Christopher J. Ailman said in a press release. “This structure matches what you find in most large investment money managers.”

CalSTRS plans to eventually manage 60 percent of its assets internally. Currently it manages 45 percent in-house.
Smith will oversee the fund’s Investment Operations, Branch Administration, and a new unit comprised of Compliance, Internal Controls, Ethics and Business Continuity.

“This new structure puts in place a smoother operation for a portfolio of our size and allows for better oversight,” said Ailman.
All three appointees moved up at CalSTRS from other high-level positions. Previously, Smith was director of investment operations.

The largest educator-oriented pension fund in the world, CalSTRS’ portfolio is valued at $186.4 billion and serves 868,000 public school educators and their families from the state’s 1,600 school districts, county educational offices and community college districts.