Program Structure

General Information

By policy, the program objective for the CalSTRS Securities Lending Program is to assist the fund in meeting its investment goals by generating incremental income through collateralized, low-risk, short-term loans, using a portion of the lendable assets within the portfolio.

The program is:

  • Designed to provide a balance between risk control and diversification.
  • Based upon the two sources of income:
    • Lending terms.
    • Return generated from the management of cash taken as collateral for the loan.
  • Designed to take advantage of the benefits of both internal and external management in a prudent manner.
Bank Who’s Lending What? What Are Their Responsibilities?
Goldman Sachs Agency Lending (GSAL) Domestic Equities, International Equities Lending Agent / CalSTRS Cash Manager
Credit Suisse First Boston (CSFB) Fixed Income Lending Agent / CalSTRS Cash Manager
State Street Bank1 Domestic Equities, International Equities,
Fixed Income
Lending Agent / Cash Collateral Manager
1State Street also lends as CalSTRS’ master custodian.

CalSTRS Lendable Assets by Participant

$122.78 Billion
December 31, 2014

Pie chart: State Street, $67.07 billion, 54.63%; GSAL, $50.89 billion, 41.45%; CSFB, $4.82 billion, 3.92%
1State Street also lends as CalSTRS’ master custodian.

CalSTRS has a strategy of using multiple lending agents and multiple asset managers in order to benefit from both diversification and competition.