- 64 percent of the credits were created by U.S. equity trading, 35 percent came from non-U.S. and 1 percent from emerging markets trading.
- $456,907 in brokerage credits were generated in calendar year 2013.
The CalSTRS Directed Brokerage Program, which started in the 1980s, was designed to take advantage of the credits being created from CalSTRS investment transactions both by internal staff and external managers. These credits were used to help offset the cost of running the overall investment program, thereby reducing the burden on the Appropriated Support budget and the Continuously Appropriated budget.
In the decade of the 2000s, we saw the creation of credits drop as they were discontinued on the issuance of new debt obligations within the fixed income industry. The level of new credits created this past calendar year marks the sixth consecutive annual decline and represents an 85 percent drop from the level of credits created in 2007.
Directed Brokerage Credits Generated Each Year
Expenditures and Rebates
There were no directed brokerage expenditures in 2013. However, during the year, over $250,000 was requested back in the form of rebates. These funds have been deposited into the fund as additional income.
Directed Brokerage Expenditures in 2013
Directed Brokerage Rebates in 2013
Directed Brokerage Outstanding Credits at December 31, 2013
|Broker / Dealer||Balance||%||Diversity|
|Knight Capital Americas||$139,759||43.8%|
|Capital Institutional Services||32,908||10.3%|