CalSTRS News Archive

CalSTRS news archive

Overview

Past news articles, reports and other published materials on CalSTRS programs and investments.

Article CIO Magazine, PensionsFebruary 24, 2021

CalSTRS aims for new $2 billion sustainable portfolio

The California State Teachers’ Retirement System (CalSTRS) plans to build a private markets sustainable investment portfolio to go greener while aiming to maintain its investment returns.

The pension system’s plan calls for investments of $1 billion to $2 billion in the next couple of years—much of it in real estate affordable housing investments, as well as in private equity and infrastructure—according to CalSTRS investment committee material.

Article KCBS-Radio, NewsFebruary 13, 2021

COVID-19 pandemic driving California teachers into early retirement

The coronavirus pandemic is driving many teachers in California into early retirement, according to an assessment by the state’s teacher pension system.

More than 3,200 teachers in California retired in the second half of 2020. That’s a more than 25 percent increase over the same period the previous year.

Note: Total run time 00:01:11.

Article Top 1000 Funds, Investor ProfileFebruary 11, 2021

CalSTRS takes on ExxonMobil

The $255 billion Californian pension fund, CalSTRS, has embarked on a new era of “activist stewardship” which will see it take on large companies such as Exxon Mobil which have not responded to shareholder engagement.

Article The Sacramento Bee, The State WorkerFebruary 11, 2021

COVID-19 is driving many California teachers to early retirement, CalSTRS says

More California teachers are retiring than at any point since the Great Recession, with many of those decisions motivated by the COVID-19 pandemic.

More than 3,200 teachers retired in the second half of 2020, a 26% increase over that same period in 2019, according to a blog post by the California State Teachers’ Retirement System, also known as CalSTRS.

Article Accelerate Investors, CIO Conversations with Betty SalanicDecember 15, 2020

Chris Ailman, CIO, California State Teachers’ Retirement System (Part 2)

Chris Ailman, chief investment officer of California State Teachers’ Retirement System (CalSTRS), a $230 billion pension fund, which has a 72% female membership, shares his thoughts on the role the government should play in supporting individuals vs. equity markets during our current economic crisis. He also discusses his thoughts on active management in the era of COVID-19 and he describes the leadership role that CalSTRS has played and continues to play in furthering ESG Principles.

Article Reuters, Energy & EnvironmentDecember 11, 2020

Tiny activist investor’s arguments against Exxon draw crowd to its side

Exxon Mobil Corp, a giant of the energy world and once the world’s most valuable company, is being pressured by a small investment company whose campaign for spending cuts and management change has been gathering more supporters.

Exxon has fended off past challenges seeking big change to its policies and leadership. But faltering returns – its shares are off 40% in the last five years and losses through September have reached $2.37 billion – could swing more holders behind the activist, say investors and analysts.

Article Financial Times, FTfmDecember 4, 2020

CalSTRS plans green shift after Joe Biden’s victory

The world’s largest public pension fund for teachers is planning to accelerate changes to its investment portfolio in a bid to become greener following the victory of Joe Biden in the US election.

Jack Ehnes, chief executive of the $254bn California State Teachers’ Retirement System, said CalSTRS would speed up the implementation of its green investment strategy after Donald Trump lost the poll.

Article The Wall Street Journal, DealsDecember 6, 2020

Exxon Under Pressure From New Activist Fund

Exxon Mobil Corp. is facing the threat of a proxy fight from a newcomer activist investor with a sustainability bent that wants the beleaguered energy giant to act faster to remake itself.

Engine No. 1 LLC, an investment firm launched by Chris James last week, is preparing to send a letter to Exxon ’s board urging the Irving, Texas-based company to focus more on investments in clean energy while cutting costs elsewhere to preserve its dividend. The letter, a copy of which was viewed by The Wall Street Journal, identifies four people the firm plans to nominate to Exxon’s 10-person board.

Article Responsible Investor, Commentary by Kirsty JenkinsonOctober 14, 2020

CalSTRS runs more than $246bn for our beneficiaries. Here’s how we’re managing climate risk

Our team at the California State Teachers’ Retirement System (CalSTRS) sees climate change as one of the most significant risks facing investors today. Established in 1913 – the same year Earth’s ozone layer was discovered – we have nearly a million members and more than $246bn in assets under management, and we’ve made a promise to provide a secure retirement for our members many decades into the future. Our view is that adjusting and adapting to a low-carbon economy is the best way to fulfill that commitment.

Article Risk.Net, NewsOctober 9, 2020

CalSTRS CIO: new derivatives needed to hedge ESG risks

More advanced derivatives are needed to hedge environmental, social and governance risks, so investors can move away from “binary” buy-or-sell choices, says the chief investment officer of the second-largest US pension fund, the California State Teachers’ Retirement System.

Christopher Ailman, CIO of CalSTRS, says the fund has struggled to find “good tools” to hedge ESG risks in its $263 billion portfolio.

Article Bloomberg TV, The CloseSeptember 25, 2020

CalSTRS CIO Ailman sees ESG as investment opportunity

Christopher Ailman, chief investment officer of the California State Teachers’ Retirement System (CalSTRS), says investors have to take action and be prepared for changes in the energy industry. He speaks during an interview with Bloomberg’s Romaine Bostick and Caroline Hyde on “Bloomberg Markets: The Close.”

Note: Total run time 00:03:25.

Article Top 1000 Funds, EventsSeptember 24, 2020

China ESG risk: the next unknown

One of the most important, upcoming challenges at CalSTRS is how the fund should evaluate Chinese investments from a human capital and environmental standpoint, said Chris Ailman, chief investment officer at the giant pension fund.

Article CNBC, Worldwide ExchangeSeptember 9, 2020

CalSTRS CIO: The market is all about momentum right now

Christopher Ailman, CIO of public pension fund CalSTRS, discusses what’s been driving the volatility in the markets, and how he’s positioning the fund’s massive portfolio.

Note: Total run time 00:07:24.

Article Investments & Pensions Europe, Real AssetsSeptember 4, 2020

CalSTRS puts $400m into homebuilding, real estate debt JVs

California State Teachers’ Retirement System (CalSTRS) has approved $200m (€169m) commitment each into real estate debt and US homebuilding joint ventures with Ares Management Corporation and GTIS Partners respectively.

Article Bloomberg TV, The CloseAugust 21, 2020

CalSTRS CIO Ailman sees ‘choppy’ recovery outside of tech

Christopher Ailman, chief investment officer of the California State Teachers’ Retirement System (CalSTRS), says it’s going to take a long time for the U.S. economy to recover from the Covid-19 pandemic. He speaks during an interview with Bloomberg’s Romaine Bostick, Caroline Hyde and Taylor Riggs on “Bloomberg Markets: The Close.”

Note: Total run time 00:02:00.

Article Pensions & Investments, ESG InvestingAugust 10, 2020

Industry sounds off against DOL proposal on ESG

A Department of Labor proposal that would likely curb environmental, social and governance investments in ERISA plans has drawn sharp criticism from the retirement community.

Article The Wall Street Journal, MarketsAugust 4, 2020

Beleaguered public pension funds make record gains in second quarter

Public pension funds set a 22-year performance record in the second quarter, recovering some but not all of their losses from the first quarter.

Double-digit stock gains pushed pension returns to a median 11.1% for the second quarter, according to Wilshire Trust Universe Comparison Service.

Even with the rebound, median annual returns for the public pensions whose fiscal years ended June 30 were 3.2%, far short of the funds’ long-term investment-return target of around 7%.

Article IREI, NewsJuly 22, 2020

CalSTRS moves on long-term allocation plan

The California State Teachers’ Retirement System (CalSTRS) has bumped up its target allocation to the real estate asset class from 13 percent to 14 percent as part of a shift to the new long-term asset allocation targets approved in January.

Article Pensions & Investments, Pension FundsJuly 17, 2020

New CalSTRS plan aims to reduce costs, bring more management in-house

California State Teachers’ Retirement System, West Sacramento, on Wednesday adopted fiscal year 2021 business plans for the entire $242.8 billion pension fund and each asset class.

CIO Christopher J. Ailman told the investment committee that the business plans “are actually a critical element” that keeps the team heading in the same direction.