How do you choose a CIO for a $490B pension fund?

investmentnews.com:

The largest US public pension fund is looking externally for its next chief investment officer, following a long spell of lackluster returns and leadership churn. 

The short list of candidates to run the California Public Employees’ Retirement System’s roughly $490 billion portfolio includes Jonathan Grabel, CIO of the Los Angeles County Employees Retirement Association, according to people familiar with the matter.

He’s among the final four candidates — all of them from outside the pension fund — being considered to run the portfolio, one of the people said.

The short list doesn’t include interim CIO Dan Bienvenue, a 20-year Calpers veteran. Bienvenue told acquaintances he decided not to make a bid for the job after being passed over in two past CIO search rounds, according to some of the people. Calpers plans to announce its choice by the end of the month, said spokesperson Brad Pacheco. 

Whoever takes over will lead a team of about 370 people on a high-pressure quest to meet the chronically underfunded pension’s annualized return target of 6.8%, while also navigating political tensions and intense public scrutiny. 

The last person to hold the post was Nicole Musicco. Calpers announced her departure in September, less than two years after she took over as the pension’s fourth CIO since 2009.

“I don’t know that there are any other seats on any US company or US public pension plan that have the same transparency and visibility,” Calpers CEO Marcie Frost said in an interview last year. “And some people don’t know if they’re wired for it — or they think they’re wired for it — until they actually sit in the seat.” 

Calpers declined to comment. Grabel didn’t respond to requests for comment.

Last week, the entire board