CalSTRS is the nation’s second largest public pension fund with assets totaling approximately $254.1 billion as of December 31, 2019. The investment portfolio is broadly diversified into seven asset categories.
CalSTRS Investment Philosophy
Long-Term Patient Capital—buying long-term net cash flows and capital gain potential at a reasonable price.
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.
The Teachers’ Retirement Board oversees the second-largest public pension fund in the U.S. Setting the asset allocation is the responsibility of the Investment Committee—it is one of their most important functions.
The strategy behind the asset allocation directs how CalSTRS investment staff “allocate” or invest CalSTRS assets. For example, how much to invest in the U.S. stock and bond markets.