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Diversity in the Management of Investments

Diversity in the Management of Investments
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CalSTRS is committed to setting best practice precedents, implementing innovative diversity and inclusion principles, motivating positive change, and advancing the world’s investment markets. We do this by establishing collaborative relationships across a vast network of investment managers, portfolio companies and industry associations in order to maximize returns and leverage opportunities for positive change.

For more information about CalSTRS emerging manager investments, refer to the following sections of the Diversity in the Management of Investments 2022 annual report:

    Annual progress reports

    Annual report summarize the progress of the strategic plan to expand and diversify management of the investment portfolio.


    For accessible versions of these reports, contact

    California Assembly Bill 890 (Cervantes)

    In October 2021, AB 890 (Cervantes) was signed into law. CalSTRS definitions of emerging manager, diverse manager and objective are as follows.

    Venn diagram comparing definitions of an emerging manager and a diverse manager

    Emerging manager

    Diverse manager

    • Substantially diverse: A firm that is 25% to 49% owned by women, ethnic minority group, and/or a person of the LGBTQ+ community 
    • Majority diverse: A firm that is 50% or more owned by women, ethnic minority group, and/or a person of the LGBTQ+ community
    • Ethnic minority group members include individuals who are African American, Asian American, Hispanic American, Native American, Pacific Islander, or other, and based on EEO-1 U.S. Census classifications. LGBTQ+ community members include people who identify as lesbian, gay, bi-sexual, transgender, or queer

    Objective regarding the participation of emerging or diverse managers responsible for asset management within the system’s investment portfolio

    • Consistent with its fiduciary duties, pursue and invest in emerging managers and diverse managers that generate performance that is aligned with the risk and return objectives of the applicable CalSTRS asset class

    Related CalSTRS board materials

    CalSTRS Investment Committee – May 2022

    Video: Agenda items 1 through 12

    Agenda Item 4a - Diversity in Management of Investments - AB 890 Implementation Plan

    Item 04a - MemoItem 04a & 04b - PowerPointItem 04a - Attachment 1 - AB 890 Reporting RequirementsItem 04a - Attachment 2 - AB 890 Emerging Manager Definition