By policy, the program objective for the CalSTRS Securities Lending Program is to assist the Teachers’ Retirement 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 on 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)1||Fixed Income||Lending Agent / CalSTRS Cash Manager|
|State Street Bank2||Domestic Equities, International Equities,
|Lending Agent / Cash Collateral Manager|
CalSTRS Lendable Assets by Participant
December 31, 2015
CalSTRS has a strategy of using multiple lending agents and multiple asset managers in order to benefit from both diversification and competition.