CalSTRS Makes Policy Changes in Real Estate, Public Equity
Sacramento, CA – The California State Teachers’ Retirement System has announced that it will be implementing changes in its Real Estate Policy and Equity Portfolio Policy. The changes, which were recommended by staff and approved unanimously at the July 7 meeting of the Teachers’ Retirement Board, were as follows:
- Real Estate: The Chief Investment Officer was given discretionary authority to allocate up to, and including, $100 million in initial allocations to new managers, and up to $400 million in follow-on investments with a firm. CalSTRS staff will present the Investment Committee with a detailed written analysis of any firm that reaches $500 million in allocation, and the Investment Committee can require staff to bring the firm in for a presentation prior to any additional allocations. The CIO has also been given discretionary authority to approve individual transactions up to, and including, $500 million of equity for firms selected by the Investment Committee through the RFP process. Click here for Further specifics about the policy change.
- Equity: The Board approved the incorporation of Investment Objectives and the respective benchmarks for the U.S. and Non-U.S. equity portfolios, added language addressing portfolio diversification and included the parameters for co-investments for the relational investments for the Corporate Governance Program. Click here to view the updated policy.
CalSTRS is the third-largest public pension fund in the United States, with a current market value of $114 billion. It provides retirement, disability and survivor benefits to California’s public school teachers from kindergarten through community college, serving more than 735,000 members and their families.