2017 News Releases

2017 News Releases

Overview
Statement Michelle Mussuto

CalSTRS Persists at Protecting Assets from Environmental Risk Despite President Trump’s Pull Out of Paris Climate Agreement

WEST SACRAMENTO, Calif. – CalSTRS Chief Executive Officer Jack Ehnes issued the following statement in response to President Trump’s decision to withdraw the United States from the Paris Climate Change Agreement:

“For CalSTRS, our primary mission is to maximize returns for the fund in order to safeguard the retirement security for more than 914,000 California educators and their beneficiaries. Over ten years ago, we recognized that climate change presented investment opportunities and risks to the fund and we implemented strategies to address them.

News release Ricardo Duran

CalSTRS Advances Global Stewardship and Accountability Standards for Long-Term Sustainability
2015—16 GRI sustainability report showcases pension fund’s engagement efforts and risk-mitigation strategies across environmental, social and governance related topics

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System today released Global Stewardship at Work, its 2015—16 sustainability report. This is the third year the system published the report, which is based on the Global Reporting Initiative G4 Guidelines.

Statement Michelle Mussuto

CalSTRS Upends Wells Fargo Stagecoach with Votes Against Long-Tenured Board Members

WEST SACRAMENTO, Calif. – CalSTRS voted its 11.6 million shares against long-tenured board members John D. Baker II, John S. Chen, Lloyd H. Dean, Enrique Hernandez, Jr., Donald M. James, Cynthia H. Milligan, Federico F. Peña, Stephen W. Sanger, and Susan G. Swenson. These board members failed in their duty to shareholders to identify the weaknesses in the company’s risk and oversight mechanisms.

News release Ricardo Duran

CalSTRS Releases 2016 Actuarial Valuation
Impacts of investment and longevity assumptions felt; fund still moving toward funding goal

WEST SACRAMENTO, Calif. – The Teachers’ Retirement Board today adopted the actuarial valuation for the CalSTRS Defined Benefit Program as of June 30, 2016, reflecting impacts from assumption changes while also illustrating continued progress toward the system’s long-term funding goals.

News release Michelle Mussuto

CalSTRS Corporate Governance Program Elevated Its Voice on Policy in 2016
2016 annual report highlights success of key initiatives, collaborations and a glimpse into plans for 2017

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System today released its 2016 Corporate Governance Annual Report. The report highlights the Corporate Governance staff efforts in, among other issues, regulatory activities, proxy voting and portfolio company engagement.

News release Michelle Mussuto

CalSTRS and Banc of California Collaboration Creates a More Diversified Board
Appointments of two women to previously all male board are a result of collaborative engagement

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System today praised Banc of California’s announcement that it has added Mary Allis Curran and Dr. Bonnie Guiton Hill to its board of directors. CalSTRS worked together with investment partners Legion Partners Asset Management, LLC and Banc of California to identify the best board candidates.

News release Ricardo Duran

CalSTRS Purchases Portfolio’s First Social Bond
Multimillion dollar bond will help women-owned businesses and low-income communities in emerging markets

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System today announced its first social bond purchase, worth $5 million. Bond proceeds will go toward financing women-owned enterprises and projects for low-income communities in emerging markets, while providing competitive returns to the teachers’ fund.

News release Michelle Mussuto

CalSTRS Unveils Redesigned 403bCompare.com Featuring Enhanced User Interface and Robust Product Fee Comparison Database
State legislated website provides tools to navigate thousands of supplemental savings investment options

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System today announced a comprehensive redesign of 403bCompare.com, a free online resource providing tools for visitors to compare hundreds of supplemental savings products available through their employer. The site is available to all certificated and classified employees of California public school and community college districts, county offices of education and charter schools.

News release Michelle Mussuto

CalSTRS Chief Operating Investment Officer Appointed to Advisory Group focused on Public Company Accounting Oversight

Debra Smith

WEST SACRAMENTO, Calif. – The California State Teachers’ Retirement System is celebrating the appointment of its Chief Operating Investment Officer, Debra Smith, to the Public Company Accounting Oversight Board’s Standing Advisory Group. Ms. Smith will represent the investors’ perspective and voice in the advisory group. Her three-year term runs through the end of 2019.

News release Ricardo Duran

CalSTRS Adopts New Economic and Demographic Assumptions and Continues Progress Toward Long-Term Funding Goal

WEST SACRAMENTO, Calif. – Consistent with its commitment to ensuring a financially sound retirement system, the California State Teachers’ Retirement Board today voted to adopt a new set of actuarial assumptions that reflect members’ increasing life expectancies and current economic trends. Today’s decisions were based on the multi-year CalSTRS Experience Analysis, commonly referred to as the experience study, spanning July 1, 2010, through June 30, 2015.

Statement

Defined Benefit Pensions Reward California’s Educators

UC Berkeley research shows California educators are better supported by CalSTRS’ Defined Benefit pension versus a 401(k)-style plan. Various other studies focus on teacher tenure data by using only young, new-hire turnover statistics in order to represent the majority of the educator workforce, which is inaccurate and misleading.

News release Michelle Mussuto

Leading Investors Launch Historic Initiative Focused on U.S. Institutional Investor Stewardship and Corporate Governance
Unveils Framework of Guiding Principles with Expectation of Long-Term Value Creation, Investor Protection

CalSTRS is one of the founders of the Investor Stewardship Group. The ISG is a collective of some of the largest U.S.-based institutional investors and global asset managers, along with several of their international counterparts. It was formed to develop a sustained initiative to establish a framework of basic standards of investment stewardship and corporate governance for U.S. institutional investor and boardroom conduct. The ISG is being led by the senior corporate governance practitioners at institutional investor and investment management firms.

The ISG brings all types of investors together to enable them to speak with one voice on these fundamental issues of corporate governance and investment stewardship.