News Releases
CalSTRS Names Head of Corporate Governance
Anne Sheehan to expand corporate governance efforts
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) announced today the appointment of Anne Sheehan to the newly created position of Director of Corporate Governance. She will join the staff in October to guide its corporate governance program to a higher level of activism.
CalSTRS Names Cassandra Lichnock Director of Human Resources and Organizational Development
SACRAMENTO, CA – Cassandra Lichnock has been named director of Human Resources and Organizational Development for the California State Teachers’ Retirement System (CalSTRS). She begins work at the nation’s second-largest public pension fund on Aug. 25.
CalSTRS Seeks Pension Accounting Consultant
The consultant will develop a pension accounting model and train CalSTRS employees to use it.
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today launched a search for a consultant team to research, design and implement a best practice model for pension accounting and to provide CalSTRS employees transition support and training in its operation.
The final filing date for proposals is Sept. 8, 2008, with the selection expected to be in October.
CalSTRS Beats its Benchmark Despite a Troubled Market
The investment portfolio's 3.7 percent loss is the first in six years.
SACRAMENTO, CA – California State Teachers’ Retirement System (CalSTRS) investments took a 3.7 percent hit in the fiscal year ending June 30, 2008. Even with its first loss in six years, CalSTRS outperformed its benchmark, which dipped 3.8 percent.
The news from the $162.2 billion fund comes amid the gloom of a 5 percent average loss for public pensions, according to Merrill Lynch analysts.
95 Years Serving State’s Educators Celebrated at CalSTRS Board Meeting
Legislative and gubernatorial representatives recognized CalSTRS’ support of California’s educators since 1913.
SACRAMENTO, CA – With a resolution, a letter of congratulations – and a cake – the California Legislature and Governor Schwarzenegger’s office today recognized the California State Teachers’ Retirement System’s (CalSTRS) 95 years of service in support of the state’s educators.
CalSTRS Recognized for Commitment to Diversity
CalSTRS effort benefiting women and minorities in securities earns a national award.
SACRAMENTO, CA – California State Teachers’ Retirement System (CalSTRS) today was recognized for its commitment to involving women and minorities in the securities industry by the National Association of Securities Professionals.
CalSTRS Seeks a Director of Global Equities
The position oversees a portfolio valued at more than $100 billion.
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today launched a national search for a Director of Global Equities to oversee a portfolio valued at more than $100 billion.
ONEOK Vote Supports CalSTRS Call for Climate Risk Reporting
Proxy votes show growing support for reporting on greenhouse gas emissions.
SACRAMENTO, CA – ONEOK Shareholders solidly supported a California State Teachers’ Retirement System (CalSTRS) call for the Tulsa-based gas pipeline company to report on greenhouse gas emissions.
Despite ONEOK (NYSE: OKE) management’s opposition, 33 percent of shareholders supported Proposal #8 as reported at the company’s May 15, 2008 annual meeting.
CalSTRS Names Developing Manager Firms for Fixed Income
Managers program extends CalSTRS reach into the marketplace
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today announced its intent to award contracts to three investment management firms that will implement a developing manager program in its fixed income portfolio.
RiskMetrics Group Supports Climate Risk Report Resolution Filed with ONEOK
Nation's leading proxy advisor recommends passage of CalSTRS shareholder proposal
SACRAMENTO, CA – RiskMetrics Group, the nation’s leading proxy advisor, recommends investors support a shareholder resolution filed with Tulsa-based ONEOK, Inc., seeking a report on its greenhouse gas emissions.
CalSTRS Pressures ONEOK to Report on Greenhouse Gases
Pension fund seeks risk reporting on climate change gases from the pipeline company.
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) is pressing natural gas pipeline company ONEOK to report on its greenhouse gas emissions through shareowner Proposal 8, scheduled for a vote at the May 15, 2008 annual meeting.
CalSTRS Names Head of Corporate Governance
Nationally known executive Michael McCauley to expand corporate governance efforts
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) announced today the appointment of nationally known executive Michael P. McCauley to guide its corporate governance program to a higher level of activism. He comes on board June 1, 2008.
Dana Dillon Re-elected Chair of CalSTRS Board
Jerilyn Harris returns as Vice-Chair
SACRAMENTO, CA – Trustees of the California State Teachers’ Retirement System (CalSTRS) unanimously re-elected Dana Dillon as Chair and Jerilyn Harris as Vice-Chair for the 2008-09 term at their April 3 meeting.
Investors Get Action From Dynegy on Climate Change
SACRAMENTO, CA – Leading U.S. investors announced today that Dynegy, a Houston-based company that provides wholesale electricity to utilities, cooperatives, municipalities and other energy companies in 15 states, has agreed to prepare a report for shareholders on how it is responding to the business challenges posed by climate change.
CalSTRS Expands New and Next Generation Private Equity Manager Program
Invesco Private Capital to Manage $200 Million Mandate
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) announced today it will expand its relationship with Invesco Private Capital as the manager for its CalSTRS New and Next Generation Manager Fund II, a $200 million private equity portfolio. Invesco Private Capital has offices in San Francisco, New York, Boston and London.
CalSTRS Board Opposes Proposed Legislation Barring Investments with Ties to Sovereign Wealth Funds
Restricts Teachers Pension from Private Equity Investments
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) trustees voted today to oppose California Assembly Bill 1967 due to its restriction to the board’s investment authority and significant negative financial impact to the investment portfolio.
CalSTRS Announces Firms for Developing Manager Program in U.S. Equities
Fund-of-fund managers extend CalSTRS' reach into the marketplace
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today announced its selection of four investment management firms to construct, manage and monitor a fund of funds for its $1.8 billion U.S. Equities Developing Manager Program.
CalSTRS Seeks Investment Accounting Consultant
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today launched a search for a consultant team to research, design and implement a best practice model for investment accounting and to provide appropriate training to CalSTRS employees in its operation.
CalSTRS Seeks Independent Fiduciaries for Its Private Equity Proactive Portfolio
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today launched a search for independent fiduciaries to screen partnerships, make recommendations and help investment staff negotiate with prospective partners for the CalSTRS Private Equity Proactive Portfolio.
CalSTRS Trustees Elected by Public School Educators
SACRAMENTO, CA – Current California public school educators elected three members to the governing body of the California State Teachers’ Retirement System. In election results announced today, the two Teachers’ Retirement Board members elected by the kindergarten through twelfth grade educators are:
CalSTRS Announces Real Estate Consultant
The Townsend Group is selected to advise the pension fund on real estate investments.
SACRAMENTO, CA – The California State Teachers’ Retirement System today announced The Townsend Group as its consultant to advise CalSTRS’ Investment Committee on overall real estate investment strategy, policies and practices.
The Townsend Group works for the Investment Committee and with CalSTRS investment staff to monitor and comment on the real estate portfolio performance and policy.
CalSTRS Seeks Full SEC Decision on Proxy Access
Chairman’s ruling will not serve the interests of shareholders, CalSTRS Chief Executive says.
SACRAMENTO, CA – CalSTRS Chief Executive Jack Ehnes today joined the nation’s top institutional investors calling for the chairman of the Securities and Exchange Commission to delay decisions on proposed rules that could weaken shareholders’ ability to nominate directors for election to corporate boards.The proposed SEC rules, S7-16-07 and S7-17-07, impact the ability of shareholders to nominate directors to corporate boardsu
State to Pay CalSTRS Interest on Withheld $500M Payment
California Supreme Court upholds CalSTRS’ call for state to pay $200 million in interest.
SACRAMENTO, CA – The California Supreme Court has declined to review a lower court decision awarding California State Teachers’ Retirement System’s (CalSTRS) $200 million in interest payments on $500 million withheld by the state in 2003-2004. The funds support CalSTRS’ inflation-protection program, the Supplemental Benefit Maintenance Account (SBMA).
CalSTRS Backs Principles for Responsible Investment
Framework Given for Sustainable Development Considerations in Investment Decisions
SACRAMENTO, CA – California State Teachers’ Retirement System (CalSTRS) today announced support for the Principles for Responsible Investment, a menu of actions on environmental, social and governance issues in making investment decisions.
CalSTRS Seeks Alternative Investment Program Advisors
The request for proposals aims to select advisors for three global regions.
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS), today issued a request for proposals seeking alternative investment portfolio advisors to recommend partnerships, perform due diligence and assist and advise CalSTRS staff.
The final filing date for proposals is Nov. 29, 2007, with selections expected by early 2008.
CalSTRS Tells SEC its Proposed Rules Ignore Shareholder Interests
SACRAMENTO, CA – The nation’s second-largest public pension fund today told the Securities and Exchange Commission its proposed rules for increasing shareholders’ ability to nominate and elect directors are counterproductive.
CalSTRS Seeks Real Estate Consultant
Names Four New Equities Managers for Sustainable Investments
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today announced a search for a real estate consultant to provide expertise and advice to the CalSTRS Investment Committee related to the overall investment strategy, policies and practices of the CalSTRS Real Estate Program.
The final filing date for proposals is October 17, 2007, with the selection expected in January 2008.
Teachers’ Pension Gives Students Free Home Computers
Surplus Computers Get Second Life to Help Learning
SACRAMENTO, CA – West Sacramento public school students will soon have computers at home to help their learning thanks to the California State Teachers’ Retirement System (CalSTRS). On September 24 officials from the Washington Unified School District and CalSTRS board chair Dana Dillon will present the first 25 computers to Elkhorn Village Elementary School sixth graders and their families.
CalSTRS Seeks Currency Management Firms
Active Currency Specialists to Enhance Foreign Currency Exposure
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) has launched a search to establish manager mandates and a pool of currency managers to enhance its Currency Management Program.The final filing date for the request for proposal is October 5, 2007, with selections expected in spring 2008.
CalSTRS Expands Its Environmental Investment Initiative
Names Four New Equities Managers for Sustainable Investments
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) today announced the four management firms selected for its $225 million Sustainable Investment Program. These managers will consider environmental factors in their stock selection and join an ongoing initiative for “green investments” that includes a $285 million program for clean technology alternative investment opportunities.
CalSTRS Receives $500M Payment from State
Funds Transferred Following Appeals Court Decision
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) has received $500 million from the State of California for a skipped payment to its inflation-protection program, the Supplemental Benefit Maintenance Account (SBMA). The state transferred the funds following an August 30 appeals court decision, which held the state violated its obligation to California’s retired educators when it withheld the payment for the 2003-2004 fiscal year.
CalSTRS Board Approves Restrictions to Campaign Contributions
State Regulations to Guard Against 'Pay to Play' on Investment Decisions
SACRAMENTO, CA – The board of the California State Teachers’ Retirement System (CalSTRS) today approved proposed regulations restricting campaign contributions to board members. Today’s action is the latest step in establishing the state’s first such regulations for public pension plans.
Court Overturns State Raid on Teachers’ Pension Fund
SACRAMENTO, CA – The Third District Court of Appeal in Sacramento issued a decision today that will require the State of California to pay the California State Teachers’ Retirement System (CalSTRS) $500 million plus interest stemming from a withheld payment for fiscal year 2003-2004.The three-member panel unanimously held that the state violated its contractual obligation to California’s retired educators when it withheld its
CalSTRS Posts 21 Percent Investment Return for the 2006-07 Fiscal Year
Portfolio Doubles Size From October 2002 Stock Market Drop
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) posted a 21.0 percent return on investments, adding $26 billion to the fund with $170.4 billion in assets as of June 30, 2007. The nation’s second-largest public pension fund doubled its portfolio in four and a half years following the U.S. stock market’s steep decline in October 2002.
CalSTRS Offers New IRS Compliance Service for School Districts
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) is launching a new program to assist school districts, county offices of education and community college districts in complying with new Internal Revenue Service regulations regarding 403(b) supplemental retirement savings plans.
CalSTRS Rejects Icahn Offer for Lear Corporation
SACRAMENTO, CA – The California State Teachers’ Retirement System has decided to vote its 1.4 million shares of common stock in the Lear Corporation against the merger with the Carl Icahn unit, American Real Estate Partners (AREP).CalSTRS believes that the offer price is too low, by almost half, and that the long-term value of Lear will be realized more successfully if the current merger is not consummated.CalSTRS wrote a
CalSTRS and TIAA-CREF Team to Expand Retirement Savings Plan for California Educators
SACRAMENTO, CA and New York – The California State Teachers’ Retirement System (CalSTRS) and TIAA-CREF, the national financial services organization and the leading provider of retirement services in the academic, medical, research and cultural fields, today announced they have joined forces to expand CalSTRS’ supplemental retirement savings program, which is open to about 800,000 Californians.Through this relationship, CalSTR
CalSTRS Annual Financial Report Recognized for Excellence
SACRAMENTO, CA – The California State Teachers’ Retirement System’s 2006 Comprehensive Annual Financial Report recently received the “Certificate of Achievement for Excellence in Financial Reporting” from the Government Finance Officers Association of the United States and Canada. The certificate is the highest form of recognition in the area of governmental accounting and financial reporting.
CalSTRS Board Urges Energy Companies To Review Growing Risk of Business in Iran
SACRAMENTO, CA – California State Teachers’ Retirement System (CalSTRS) trustees today called on 13 international energy companies with which it invests to take immediate steps to assess the risks to their business operations in Iran. CalSTRS, the nation’s second-largest public pension fund, estimates it has $1.4 billion invested in these companies that have some operations in Iran.
Health Care Coverage Worsens for Retired Educators, Teachers Pension Chief Reports
Sacramento, CA – Jack Ehnes, CalSTRS chief executive officer, today reported California’s retired teachers have less financial help from their employers for their health care coverage than just three years ago. In testimony before the Public Employee Post-Employment Benefits Commission, Ehnes reported on results of the second health benefits survey done by California State Teachers’ Retirement System (CalSTRS).
CalSTRS, CalPERS Urge UnitedHealth to Respond to Landmark Investor Vote for Proxy Access
Sacramento, CA – The nation’s two largest public pension funds today called on UnitedHealth Group to respond to owners of $28 billion in stock who voted for a proposal seeking investor access to board election ballots.
Vonnie Madigan Named CalSTRS Communications Director
SACRAMENTO, CA – Vonnie Madigan has been named Communications Director of the California State Teachers’ Retirement System.
CalSTRS Urges Shareowners Vote for Proxy Access Proposal at UnitedHealth
Effort to Bring Fairness and Accountability to Investor Governance Process
SACRAMENTO, CA – A desire for improved shareowner democracy by the UnitedHealth Group directors has prompted the California State Teachers’ Retirement System to ask UNH shareowners to support Proposal 4 on the company’s May 29th ballot.
CalSTRS Seeks Firms for Developing Manager Programs in Fixed Income and U.S. Equities
SACRAMENTO, CA – The California State Teachers’ Retirement System has launched searches for investment management firms for its Fixed Income and U.S. Equities developing manager programs.
CalSTRS and CalPERS Pensions Power Up State and Local Economies
SACRAMENTO, CA – Retirement benefits paid by the state’s two big public pension funds, the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), generate a powerful $21 billion in economic activity statewide every year, according to the first ever study of pension payments, CalPERS announced today.
Dana Dillon Elected Chair of CalSTRS Board
Jerilyn Harris Picked as Vice-Chair
SACRAMENTO, CA – The board of the California State Teachers’ Retirement System elected Dana Dillon as Chair and Jerilyn Harris as Vice-Chair for the 2007-08 term during its regularly scheduled meeting April 5.
CalSTRS Board Opposes State Budget Proposal Threatening Inflation Protection Program
SACRAMENTO, CA – The Teachers’ Retirement Board voted today to oppose the Administration’s state budget proposal affecting the CalSTRS inflation protection program for retirees. The proposal would:
CalSTRS Corporate Governance Efforts Pay Off
Shareholder Engagement Improves Performance and Governance in Workplan Companies
SACRAMENTO, CA – The California State Teachers’ Retirement System has seen both near- and long-term improvements in governance efforts and stock performance of those companies previously placed on its “Workplan” list.Of the five companies identified as poor performers in October 2005, four have made significant changes to their governance, leading to increased board independence, improved accountability to shareholders and po
CalSTRS Expands Savings Investment Vehicles for Public School Employees
SACRAMENTO, CA – The California State Teachers’ Retirement System announced today an expansion of its supplemental retirement savings program with the addition of 457 and Roth 403(b) plans by late 2007. What this means for the more than one million California public school employees and their families is they will have more avenues to boost their retirement security.
CalSTRS Names New General Counsel
SACRAMENTO, CA – Kathleen Andleman has been named General Counsel of the California State Teachers’ Retirement System. She will begin work at the nation’s second-largest public pension fund on April 2.
CalSTRS Seeks Alternative Investment Consultant
SACRAMENTO, CA – The California State Teachers’ Retirement System seeks an alternative investment consultant to provide expertise, advice, and recommendations to the CalSTRS Investment Committee related to the overall investment strategy, policies and practices of the CalSTRS alternative investment program.
CalSTRS, CalPERS Urge Shareowners Vote for Proxy Access Proposal at Hewlett Packard
Effort to Ensure Accountability, Growth, Greater Shareowner Value
SACRAMENTO, CA – The nation’s two largest public pension funds – owners of more than $1.2 billion in stock at Hewlett-Packard Company – today asked HP shareowners to pass Proposal 3 on the company’s March 14 ballot that would give shareowners a voice in nominating independent directors.
CalSTRS Seeks Third Party Administrator for New Deferred Compensation Plan Services
SACRAMENTO, CA – The California State Teachers’ Retirement System has launched a search for one or more firms that are experienced in administering deferred compensation plans for new services that CalSTRS will offer later this year.
CalSTRS Settles AOL/Time Warner Securities Fraud Suit
Falsifying Revenues Cost California's Teachers Fund $135 Million
SACRAMENTO, CA – The California State Teachers’ Retirement System today announced a $105 million settlement in a securities fraud case against AOL Time Warner, its accountants, banks and several former executives.The suit charged that AOL artificially inflated its stock price in 2000 and 2001 prior to its merger with Time Warner, resulti
Institutional Investor & Retirement Organizations Partner to Form New National Non-Profit
National Institute on Retirement Security To Conduct Research & Education Programs
Washington, D.C. – Three national trade organizations today filed articles of incorporation to establish a new non-profit, the National Institute on Retirement Security. This unique partnership will create an entity dedicated to conducting research and education programs to foster a deep understanding of the traditional pension system in the U.S.
CalSTRS Announces $46.5 Million in a Settlement Against Qwest Communications and Former CEO
Sacramento, CA – The California State Teachers’ Retirement System has reached a settlement of $46.5 million with Qwest Communications.The lawsuit accused the telecommunications firm of misrepresenting its financial well-being by artificially inflating its stock price in 2001, leading to fina
CalSTRS, CalPERS Survey Finds Few Global Utilities Confront Carbon Emissions Threat
Sacramento, CA – According to a report released today by CalSTRS and CalPERS, few of the world’s electric power companies are creating overall economic value — if they account for the environmental impact of their carbon emissions,.
CalSTRS AND CalPERS Unveil Emerging Managers and Financial Services Database
Helps public pension funds track emerging investment managers, providers
Sacramento, CA – The California State Teachers’ Retirement System (CalSTRS) and the California Public Employees’ Retirement System (CalPERS) today unveiled a groundbreaking database of more than 700 emerging managers and financial service providers.
CalSTRS Becomes First Major U.S. Public Fund to Back Enhanced Analytics Initiative
Sacramento, CA – The California State Teachers’ Retirement System has joined the Enhanced Analytics Initiative as an Associate Member, becoming the first major U.S. public fund to do so. EAI is an international collaboration of asset owners and asset managers aimed at encouraging investment research that considers the impact of extra-financial issues on long-term company performance.
CalSTRS CIO Christopher J. Ailman Honored by New America Alliance
For Expanding the Diversity of Ideas and People Throughout CalSTRS’ Investment Portfolio
Sacramento, CA – During a ceremony at the Sixth Wall Street Summit in New York City, the New America Alliance awarded Christopher J. Ailman, CalSTRS’ chief investment officer, the NAA Distinguished Service Award for Advancing Latinos in American Business. Mr. Ailman was recognized for his innovative approach in uncovering untapped talent in the investment arena and encouraging other institutional investors to seek out and hire emerging managers.
California’s Teachers’ Retirement Board Sets High Ethics Bar
Changes Restrict Campaign Contributions, Increase Investment Decision Transparency and Eliminate Conflicts of Interest
Sacramento, CA – At its meeting today, the Teachers’ Retirement Board approved sweeping changes to its Board Governance policy.The new rules restrict political contributions and gifts, require disclosure of placement agent fees and require disclosure of certain types of communications involving board members and/or CalSTRS staff.Upon taking office, board members must now sign a pledge confirming their independence and underst
CalSTRS and CalPERS Applaud SEC Chairman Christopher Cox Proxy Access Rulemaking Process
Sacramento, CA – Jack Ehnes, Chief Executive Officer of the California State Teachers’ Retirement System and Fred Buenrostro, Chief Executive Officer of the California Public Employees’ Retirement System issued the following joint statement today about the announcement made by SEC Chairman Christopher Cox on proxy access:
“We commend Chairman Cox for his decision to go forward with a deliberative rulemaking process on the use of the proxy to nominate corporate directors. We are confident it will result in a thoughtful rule permitting reasonable, fair shareowner access.
CalSTRS Seeks Transition Managers
Sacramento, CA – The California State Teachers’ Retirement System today launched a search for one or more investment management firms with experience in transition management to act as fiduciaries in transactions that may include portfolio liquidation, asset allocation changes and portfolio rebalancing. The final filing date for proposals is November 14 with selections expected in the spring of 2007.
CalSTRS Board Votes on Comprehensive Funding Strategy
Creates Framework for Long-term Full Funding
Sacramento, CA – At its meeting today, California’s Teachers’ Retirement Board took a major step in closing the California State Teachers’ Retirement System’s long-term funding gap of $20 billion. The board approved guiding principles CalSTRS staff will use to draft legislation. Any change to the system must be signed into law by the Legislature and Governor.
CalSTRS Adopts New Asset Allocation Targets
Sacramento, CA – The Teachers’ Retirement Board voted today to make significant changes to the $144 billion portfolio, moving to a higher risk, higher return asset mix. The decision comes at the conclusion of a six-month asset and liability allocation study that weighed both the costs to administer the system and the funded status of the system over a 30-year horizon.
CalSTRS Posts 13.2 Percent Investment Returns for the Fiscal Year
Sacramento, CA – The California State Teachers’ Retirement System posted a 13.2 percent return on investments, adding $13.5 billion to the fund ending the year with $142.7 billion in assets as of June 30, 2006. Real estate, alternative investments and international stocks were the engines of growth that led to the fourth straight year of positive returns for the system.
CalSTRS Takes a Position on Sudan Divestment Legislation
Sacramento, CA – The Teachers’ Retirement Board voted to support legislation, if amended, which addresses concerns about investing in companies doing business in Sudan. The board supports the bill, Assembly Bill 2941 (Koretz D-West Hollywood), if it will indemnify CalSTRS officials and managers for divestment decisions made while applying CalSTRS’ new geopolitical risk investment policy in the Sudan.
CalSTRS Co-sponsors Second Round of Five-Year Long Diversity Survey with Leading Edge Investment Advisors and Anira Advisory Group
Sacramento, CA – The California State Teachers’ Retirement System invites investment management professionals to participate in the second round survey in its comprehensive, five-year long study concerning attitudes to diversity in the management of investments.The anonymous survey consists of 38 brief multiple choice questionsa
CalSTRS Seeks Investment Firms Specializing in Corporate Governance
Sacramento, CA – The California State Teachers’ Retirement System today launched a search for one or more investment management firms with experience in corporate governance and a successful track record in relational investing to complement and add to its current relational portfolio.The final filing date for proposals is July 21 with selections expected in the fall of 2006.
CalSTRS Will Form Health Care Task Force
Sacramento, CA – The California State Teachers’ Retirement Board voted at their meeting today to form a task force with school health care stakeholders to address the health care issues facing employers and their employees, including retired employees.Employers have been experiencing increasing health care costs which have resulted in higher premiums paid by both the employers and employees, higher co-pays and reduced coverag
California State Teachers’ Retirement System Seeks Sustainable Investments Managers
Sacramento, CA – The California State Teachers’ Retirement System today launched a search for up to four investment management firms with expertise in managing environmentally focused sustainable investment strategies. The final filing date for proposals is June 21 with selections expected in the fall of 2006.
CalSTRS Seeks Firms Specializing in Investment Executive Search
Sacramento, CA – The California State Teachers’ Retirement System today launched a search for up to five Executive Search firms specializing in recruiting high quality investment management professionals. The final filing date for proposals is May 31 with selections expected in the fall of 2006.
CalSTRS and CalPERS to Build Emerging Managers and Financial Services Database
New York, NY – The California State Teachers’ Retirement System (CalSTRS) and the California Public Employees’ Retirement System (CalPERS) today announced a joint effort to build a first-of-its-kind database of emerging managers and financial service providers.
CalSTRS to Build New Headquarters in New Development Along the Sacramento River
Sacramento, CA – The California State Teachers’ Retirement System announced today plans to invest in West Sacramento as part of the Sacramento Riverfront Master Plan by constructing a 14-story headquarters building. Groundbreaking is planned for fall 2006 with move in expected in spring of 2009.
California State Teachers’ Board Supports Corporate Governance Legislation
Bills Ensure Shareholder Democracy and Performance-based Executive Compensation
Sacramento, CA – The Teachers’ Retirement Board will sponsor State Senate Bill 1207 (Alarcon) and officially support the provisions in Congressional Bill H.R. 4291 (Frank). Senate Bill 1207 bolsters corporate governance at the board level by strengthening shareholders voting rights in publicly-traded corporations based in California. H.R.4291 would require company disclosure of executive compensation plans in its annual reports and proxy statements.This bill would require a separate vote for general equity compensation plans and so-called Change-in-control severance agreements.
Teachers’ Retirement Board Elects Chair and Vice Chair for 2006 Term
Sacramento, CA – The board of the California State Teachers’ Retirement System re-elected Carolyn Widener as Chair and Dana Dillon as Vice-Chair for the 2006 term during its regularly scheduled meeting today, at its headquarters in Sacramento.
CalSTRS Board Reaffirms Opposition to Bill to Close Current Pension Program
Proposed legislation deemed detrimental to members and fund solvency
Sacramento, CA – The Teachers’ Retirement Board reaffirmed its opposition to Assembly Constitutional Amendment 23, authored by Assembly member Keith Richman (R-Northridge), after reviewing independent analyses at its meeting today. The proposed legislation would close the current CalSTRS defined benefit plan to public school educators hired after July 1, 2007. Newly hired employees would have a new defined benefit plan and an additional 401(k)-style account for their and their employers’ voluntary contributions.
CalSTRS Seeks Core Plus and High Yield Bond Managers
Request for proposal deadline April 12
Sacramento, CA – The California State Teachers’ Retirement System today issued a request for proposal to establish a pool of managers for both the High Yield bond and Core Plus mandates. This request for proposal introduces a new mandate for Core Plus managers that will actively manage approximately $4.5 to $6 billion. The High Yield bond manager allocation will remain at its current level of between $1.5 billion and $2.5 billion. The final filing date for proposals is April 12 with selections expected in early summer.
CalSTRS Posts 10.2 Percent Year-End Returns
Sacramento, CA – The California State Teachers’ Retirement System, second largest public pension fund in the nation, posted a 10.2 percent return for 2005, achieving $137.1 billion in assets on December 31, 2005, an $11 billion increase over 2004.
CalSTRS Debuts Results of Diversity Survey
Co-Sponsored with Leading Edge Investment Advisors and Anira Advisory Group
Sacramento, CA – CalSTRS has revealed the first round of survey results from its multiyear study of attitudes about diversity in the investment management industry.
CalSTRS Selects Five Firms to Manage Emerging Markets Equities
Sacramento, CA – California State Teachers’ Retirement System has selected Baillie Gifford Overseas Ltd., Lazard Asset Management LLC, Mondrian Investment Partners Ltd., Templeton Asset Management Ltd., and T. Rowe Price International Inc. to manage its new active Emerging Markets program. The managers will invest about 10 percent of CalSTRS’ international equity portfolio, approximately $3 billion, in emerging markets.
CalSTRS Board Opposes New Pension Legislation
Sacramento, CA – The Teachers’ Retirement Board voted to oppose Assembly Constitutional Amendment 23 at its meeting today. The bill by Assembly Member Keith Richman (R-Northridge) would effectively close the current CalSTRS defined benefit plan to public school educators hired after July 1, 2007. Those newly hired employees could only choose between one of two retirement plans, a 401(k)-style plan or a 401(k) style plan combined with a defined benefit plan.
CalSTRS Reveals Study Results on Sustainable Investments
Sacramento, CA – California State Teachers’ Retirement System has today released the results of its study on market opportunities for sustainable investments in public securities conducted by Pension Consulting Alliance, Inc.The study, commissioned by CalSTRS, outlines the growing opportunities for institutional investors to achieve a “double bottom line” in sustainable investments.A double bottom line return means that a rea
CalSTRS Underwrites Line of Credit for NYC Water
Sacramento, CA – California State Teachers’ Retirement System recently underwrote a line of credit for New York City Municipal Water Finance Authority’s variable rate bonds. CalSTRS partnered with State Street Bank & Trust to provide a line of credit totaling $200 million for the Authority. The transaction will allow the Authority to pay down its commercial paper and fund a portion of its capital projects.
Three California Pension Funds Recover $257 Million in WorldCom Lawsuit
Sacramento, CA – Three California public pension funds today announced they have recovered more than $257.4 million from a non-class action lawsuit filed against former WorldCom Inc. executives and investment banks after the financial collapse of WorldCom, Inc.
CalSTRS, CalPERS, UC Davis Close Ranks on Investment Training for MBA Students
San Diego, CA – CalSTRS, CalPERS and the University of California, Davis, Graduate School of Management, today announced a new partnership aimed at attracting top-tier business students to careers in investment management.
Teachers’ Pension Seeks Firms to Manage Enhanced Index Portfolio
Sacramento, CA – The California State Teachers’ Retirement System today launched a search for up to six fund managers for the enhanced index portion of its domestic equity portfolio. The final filing date for proposals is November 10 with selections expected in the spring of 2006.
CalSTRS Names Poor Performing Companies
Teachers’ Pension to Seek Corporate Governance Improvements
Sacramento, CA – The California State Teachers’ Retirement System has placed five companies on its Workplan of poor corporate performers.
Teacher Pension System’s Winning Web Program Gives Educators Sound Investment Tool
Sacramento, CA – A state-of-the-art personal investment Web site, administered by the California State Teachers’ Retirement System, has received recognition from a national retirement organization.
California Teachers’ Pension System Expands Credit Enhancement Program
Sacramento, CA – The California State Teachers’ Retirement System has expanded its credit enhancement program from transactions only within California, Oregon and Nevada to transactions nationwide. Entities throughout the U.S.
CalSTRS “Walks the Walk” on Climate Change: Will Disclose its own Greenhouse Gas Emissions
SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS), the nation’s third largest public pension fund, has joined a key group of environmental leaders as a new member of the California Climate Action Registry (the Registry), a non-profit organization recognized as a standard setter for tracking and reporting greenhouse gas (GHG) emissions.As a participant in the Registry, CalSTRS will voluntarily measure
CalSTRS Co-sponsors Diversity Survey With Leading Edge Investment Advisors and Anira Advisory Group
SACRAMENTO, CA – The California State Teachers’ Retirement System continued the effort it inaugurated last week to expand the diversity of ideas and people throughout its $132 billion investment portfolio. This comprehensive approach will look at the way investment decisions can integrate diversity to yield good investment returns and simultaneously reflect the new face of California.
CalSTRS Begins New Diversity Effort in Investment Management
Sacramento, CA – The California State Teachers’ Retirement System announces the start of a unique effort to expand the diversity of ideas and people throughout its $129 billion investment portfolio. This comprehensive approach will look at the way investment decisions can integrate diversity to yield good investment returns and simultaneously reflect the new face of California.
CalSTRS Posts Double-digit Gains for the 2004-05 Fiscal Year
Sacramento, CA – The California State Teachers’ Retirement System posted double-digit investment returns for its fiscal year. CalSTRS announced its third straight year of positive performance, with an all-time high total assets of $128.9 billion on June 30, 2005, and an 11.09 percent return on investments.
Settlement with PricewaterhouseCoopers Reached in Class Action Suit
Sacramento, CA – The California State Teachers’ Retirement System has reached a preliminary settlement of $17.5 million with PricewaterhouseCoopers in a class action lawsuit accusing the accounting firm of violating its professional responsibilities in its audits of Homestore.com Inc. in 2000 and 2001.
CalSTRS Prevails in Suit to Recover $500 Million State Payment
Sacramento, CA – Sacramento County Superior Court Judge Judy Holzer Hersher today ruled in favor of California State Teachers’ Retirement System in its lawsuit against the state to restore a $500 million state contribution withheld on July 1, 2003.
2005 Annual Statement Estimate Letter on myCalSTRS
If you are 45 years or older as of June 30, 2004 you can now view your 2005 Annual Statement Estimate Letter on myCalSTRS. This letter provides you with two retirement estimates based on information received from your employer as of June 30, 2004. These estimates give you an idea of what CalSTRS benefits to expect as you make your overall retirement plans. In addition to the estimates of your monthly retirement benefit, is information regarding your Defined Benefit Supplement account.
CalSTRS Seeks Managers for a $3 Billion Emerging Market Equity Program
Sacramento, CA – The California State Teachers’ Retirement System will launch on April 20 a search for up to six active equity managers to invest about 10 percent of its international equity portfolio, approximately $3 billion, in emerging markets. This action follows the CalSTRS board’s conclusion of an extensive study of the opportunities and risks in investing in emerging markets.
CalSTRS Moves Closer to Restoring Retiree Funding
Sacramento, CA – A bill that would repay over time a $500 million state contribution that has been withheld from the California State Teachers’ Retirement System was passed by the Assembly Committee on Public Employees, Retirement and Social Security this morning on a unanimous vote, bringing CalSTRS one step closer to recovering these funds without continued litigation.
Teachers’ Retirement Board Elects Chair and Vice Chair for 2005 Term
Sacramento, CA – The Board of the California State Teachers’ Retirement System elected officers for the 2005 term during its regularly scheduled meeting today, April 7, 2005, at its headquarters in Sacramento.
CalSTRS and CalPERS To Host Conference On Environmental Investing March 29 In San Jose, California
Sacramento – The California State Teachers’ Retirement System and the California Public Employees’ Retirement System announced today that they will host a conference on environmental investing on March 29, 2005 at The Fairmont in San Jose, California.
CalSTRS Earns 13.1 Percent for the Year
Portfolio Beats Benchmarks in 4 of 5 Investment Categories
Sacramento, CA – The California State Teachers’ Retirement System posted a 13.1 percent return for 2004, reaching a record high of $126.1 billion in assets on December 31, 2004. Earning $13.5 billion more than the previous year, the investment portfolio outdid its benchmarks in four of its five investment categories.
New Retirement Planning Tool Available on the Web
403bCompare.com Geared to Teachers, Other School Employees
Sacramento – The California State Teachers’ Retirement System has recently unveiled a new retirement planning Web site that will change the way employees of local school districts, community colleges and county offices of education select their retirement savings investment options.
Teachers’ Retirement Board Votes to Oppose Budget Proposal to Eliminate State Contributions to CalSTRS
Sacramento – The Teachers’ Retirement Board today voted to oppose a 2005-06 state budget proposal that could affect the contributions paid by current and future educators to both their core retirement benefit program and a supplemental retirement income program.
Teachers’ Retirement Board Formally Opposes Legislation to Replace the Current Pension System
Sacramento –The Teachers’ Retirement Board today voted to oppose two proposals that would replace guaranteed defined benefit pensions with 401(k)-style defined contribution plans for teachers and other public employees hired on or after July 1, 2007.
CalSTRS Selects Firm for New and Next Generation Manager Fund
Sacramento, CA – The California State Teachers’ Retirement System has announced the selection of INVESCO Private Capital as manager for its newly established “CalSTRS New and Next Generation Manager Fund.” INVESCO Private Capital has offices in Denver, Palo Alto and New York.
CalSTRS’ Clean Technology Advisory Board Convenes First Meeting
Sacramento – The California State Teachers’ Retirement System broke new ground in the arena of environmental investing this week with the convening of its first-ever Clean Technology Advisory Board.
Governor Signs CalSTRS Bills into Law
Sacramento – In the last days of the 2003-04 bill signing season, Governor Arnold Schwarzenegger took action on nine bills affecting the California State Teachers’ Retirement System and its members. All bills affecting benefits were signed into law by the governor, including:
Governor Acts on Legislation Affecting CalSTRS
It is the middle of the bill signing season and Governor Arnold Schwarzenegger has until September 30 to take action on legislation approved by the Legislature during the 2003-04 Regular Session. While there are a number of bills affecting the California State Teachers’ Retirement System that remain on the Governor’s desk, below are the bills that he has acted upon thus far.
Benefit Legislation Signed into Law
With the close of the bill signing season, Governor Schwarzenegger has acted upon all legislation affecting CalSTRS sent to him by the Legislature during the 2003-04 Regular Session. CalSTRS members will be pleased to learn that the Governor signed into law all the CalSTRS benefit legislation that reached his desk.
CalSTRS, Countrywide Unveil Revamped Home Loan Program
Improved Program Offers New Features, Perks for California Public School Employees
SACRAMENTO, CA — The California State Teachers’ Retirement System, the third largest pension fund in the nation, and Countrywide Home Loans, Inc., a national leader in residential finance, have teamed up to offer an improved home loan program designed to bring home ownership within reach for more eligible California public school employees.
CalSTRS Announces Significant Gains for the 2003-04 Fiscal Year
Sacramento, CA – The California State Teachers’ Retirement System has posted its year-end returns for 2003-04.The public pension fund – the third largest in the United States – announced its second straight year of positive performance, with total assets of $116.2 billion on June 30, 2004, and a 17.38 percent return on investments for the year.
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:
CalSTRS Expands Alternative Investment Partnerships Into Additional International Markets
Sacramento, CA – The California State Teachers’ Retirement System is expanding its alternative investment program by increasing the geographic scope of its partnerships.
At the regularly scheduled June meeting of the Teachers’ Retirement Board, the Investment Committee voted to expand its geographic locations for alternative investments to the entire globe. Prior to this action, the policy was limited to the United States, Canada, the United Kingdom and Western Europe.
CalSTRS Comments on SEC’s Proposed Change to the Trade-Through Rule
Sacramento, CA – The California State Teachers’ Retirement System announced today that it has sent a letter to the Securities and Exchange Commission commenting on the proposed change in the trade-through rule.The current rule, which applies to stocks listed on the New York Stock Exchange, requires brokers and dealers to trade on the market or exchange that offers the best price.The proposed modification to this rule would allow investors to opt out of the trade-through rule on a trade-by-trade basis.CalSTRS believes that investors should be given the option of choosing between speed and pr
CalSTRS Names Pension Consulting Alliance, Inc. as General Investment Consultant
Sacramento, CA – The California State Teachers’ Retirement System announced today that it has selected Pension Consulting Alliance, Inc. as its general consultant to assist the Investment Committee with the oversight of the investment portfolio. The firm was awarded a five-year contract after the CalSTRS Investment Committee listened to presentations from three finalist firms.
Allan Emkin, the lead consultant for PCA, has served as the general investment consultant to CalSTRS for the past 19 years.
CalSTRS Announces ISS Support for Independent Corporate Leadership at Qwest Communications
SACRAMENTO – The California State Teachers’ Retirement System announced today that Institutional Shareholder Services has released a report recommending that its clients vote in favor of the CalSTRS shareholder proposal calling for the separation of the CEO and board chair positions at Qwest Communications International Inc. The vote will be announced at the Qwest annual meeting on May 25, 2004. Last month, another influential proxy advisor, Glass Lewis & Co., also advised its clients to vote for the CalSTRS proposal.
CalSTRS Urges Fellow Qwest Shareowners To Support Proposal For Independent Corporate Leadership
SACRAMENTO – Concern regarding a sharp decline in the value of Qwest Communications International Inc. and a desire for improved corporate governance practices have prompted the California State Teachers’ Retirement System to seek shareowner support for its proposal to separate the role of Qwest’s board chair from its chief executive officer.
CalSTRS Announces Corporate Governance Work Plan Companies for the 2004-05 Proxy Season
SACRAMENTO -The California State Teachers’ Retirement System announced today the names of a dozen domestic companies that have been placed on the $116 billion fund’s Work Plan for the 2004-05 proxy season. Over the next year, CalSTRS will work closely with these companies with the expectation of improvements in their corporate governance practices and in their financial performance.
Institutional Investors Call for Meeting with Disney Board of Directors
Public pension funds ask for a meeting to discuss company’s performance
SACRAMENTO, CA – Six of the nation’s largest institutional investors today publicly called for a meeting with The Walt Disney Company Board of Directors to discuss the performance and future of the company.
Statement by CalSTRS and Other Institutional Investors
on Marsh & McLennan's Decision to Add an Independent Director to its Board of Directors
Marsh & McLennan Companies, Inc. announced today that it is adding Zachary Carter to the slate of nominees for election to its board of directors at its May 20, 2004 annual meeting. A group of institutional investors, AFSCME Employees Pension Plan, New York State Common Retirement Fund, California Public Employees’ Retirement System and the California State Teachers’ Retirement System, praised the move and announced they were withdrawing their proxy resolution.
Homestore.Com Class Action Suit Settled
SACRAMENTO – The California State Teachers’ Retirement System, lead plaintiff in a class action lawsuit against Homestore.com, Inc., announced today a federal court judge has given final approval to a settlement of approximately $93 million. The suit accused Homestore.com Inc., an Internet real estate company, of falsifying financial statements and engaging in accounting irregularities in 2000 and 2001.
California Teachers’ Pension Fund Hits Record High
Sacramento – The California State Teachers’ Retirement System announced today that its investment portfolio has reached an all-time high of $116.7 billion. This milestone surpasses its previous high by $166 million, which was set more than three years ago, on September 1, 2000.
The CalSTRS portfolio has rebounded more than $30 billion in the last 17 months, from a record low of $85.5 billion in October 2002. The fund has also seen its rate of return jump to 23.1 percent for calendar year 2003, after two years of negative returns.
Next Elk Hills Payment Omitted in Current Federal Budget Proposal
Sacramento – Officials of the California State Teachers’ Retirement System expressed disappointment this week upon learning that the federal budget, as currently proposed, does not include appropriations for the seventh payment due the fund for the sale of the Elk Hills school lands.
Teachers’ Retirement Board Elects Chair and Vice Chair for 2004 Term
Sacramento, CA – The Board of the California State Teachers’ Retirement System elected officers for the 2004 term during its regularly scheduled meeting today, February 4, 2004, at CalSTRS’s headquarters in Sacramento.
The Teachers’ Retirement Board members nominate and elect their own Chair and Vice-Chair each February; the officer positions are for one year’s duration, although the members’ terms are for a total of four years. The 2004 officers are:
CalSTRS Selects New Deputy CEO for Administrative Services
SACRAMENTO – The California State Teachers’ Retirement System has announced the selection of Christine Ford as the Deputy Chief Executive Officer for Administrative Services. Ford, a certified public accountant and former auditor who is currently a deputy director at the California Department of Aging, will begin her new position at the nation’s third-largest public pension fund on January 19, 2004.
Help CalSTRS Break Down the Barriers to the Board Room
CalSTRS has already spoken out in support of corporate reform. Now it’s your turn.
The Securities and Exchange Commission needs to hear from California’s educators – the individual shareholders of the CalSTRS investment portfolio – in regard to rule S7-19-03, which gives shareholders the right to nominate their own candidates to replace unresponsive and irresponsible board members during elections. Simple logic dictates that, faced with the possibility of removal, directors will be forced to pay greater attention to the issues that matter to shareholders.
Dillon and Lynes Elected to CalSTRS Board – They Join Widener as First Trustees Elected by the Members
SACRAMENTO — In a historic, first-time-ever vote, current California educators elected three members to the governing body of the California State Teachers’ Retirement System.
In election results announced today, the two board representatives of kindergarten through twelfth grade educators are:
PENSION FUNDS FILE SHAREHOLDER PROPOSAL TO CHANGE MARSH & McLENNAN BOARD
Multi-Billion Dollar Putnam Scandal and Weak Oversight To Blame
Washington, DC — Four of the nation’s most powerful public pension funds, in a heightened response to the Putnam mutual fund scandal, announced they are using an anticipated Securities and Exchange Commission (SEC) rule to more easily nominate and elect better leadership on Putnam’s parent company board.
CalSTRS Terminates Putnam Investments
Sacramento, CA – The California State Teachers’ Retirement System announced today it has terminated its relationship with Putnam Investments.
Putnam has recently come under scrutiny for failing to act when its compliance office reported improper trading activities. Although the infractions did not directly affect the CalSTRS portfolio, CalSTRS Chief Investment Officer Christopher Ailman said at today’s Investment Committee meeting he has concluded there were other fund managers who could better service the account.
CalSTRS Selects Firms for Developing Manager Program
Sacramento, CA – The California State Teachers’ Retirement System has announced the selection of three investment management firms for its newly established External Equities Developing Manager Program: FIS Funds Management, Inc., of Philadelphia, Penn.; Northern Trust Global Advisors, Inc., of San Francisco; and Russell Investment Group of Tacoma, Wash.
CalSTRS Urges SEC to Intervene in NYSE Reform Proposal
Sacramento, CA – The California State Teachers’ Retirement System today sent a letter to the Securities and Exchange Commission criticizing the reform proposal for the New York Stock Exchange that was recently approved by NYSE members. The proposal is now facing review by the SEC, which has the power to ultimately ratify or reject it.
New Board Member Appointed to California Teachers’ Pension System
SACRAMENTO — Governor Gray Davis has named Silvia Saucedo as a member of the Teachers’ Retirement Board. Saucedo was appointed to the public representative seat on the 12-member governing body for the California State Teachers’ Retirement System.
Saucedo is an attorney for the law firm of Allen, Matkins, Leck, Gamble & Mallory, LLP, in downtown Los Angeles. She specializes in real estate and land use.
Statement from CalSTRS Board on Putnam
Sacramento, CA – Christopher J. Ailman, Chief Investment Officer, California State Teachers’ Retirement System, issued the following statement regarding the discussion held today by the Teachers’ Retirement Board about CalSTRS’ relationship with Putnam Investments:
“The Board expressed its deep concern regarding recent events at Putnam Investments and directed investment staff and the Board’s investment consultant to expeditiously determine whether CalSTRS’ existing relationship with Putnam is in the best interests of the System.”
CalSTRS Announces Retirement Incentive Programs
A new law provides retirement incentives that increase monthly benefits for members of the CalSTRS Defined Benefit (DB) Program retiring from school districts that agree to offer the benefit. These two retirement incentive programs would increase either one or two of the elements used in calculating your CalSTRS service retirement benefit.
The law, Chapter 313, Statutes of 2003 (AB 1207—Corbett), allows an eligible member employed by a participating district to receive either:
CalSTRS Files Suit to Restore Retiree Funding
The California State Teachers’ Retirement System has filed a lawsuit against the state to restore a $500 million contribution cut in Senate Bill 20x. The contribution supports supplemental payments made to approximately 63,000 retired educators and their survivors. These quarterly payments are made when inflation erodes a recipient’s monthly benefit below 80 percent of its original consumer purchasing power.
Statement by CalSTRS Chief Executive Officer Jack Ehnes on the SEC’s Proposed Rule for Granting Shareholders Access to the Proxy
The Securities and Exchange Commission took a major step today in recognizing that shareholders have a fundamental right to have access to the proxy. However, questions remain as to the triggers that are being proposed; we need triggers that are responsive to the corporate crises of the past year, and we must define appropriate threshold s for these triggering events. The final rule should be sensitive to the very issues concerning corporate financial malfeasance that have plagued our markets.
CalSTRS Delivers Recommendations for Governance Change to NYSE
Sacramento, CA – The California State Teachers’ Retirement System has called for a reform of the current governance structure of the New York Stock Exchange in a letter sent to H. Carl McCall and Leon Panetta, the co-chairs of the Special Committee on Governance for the Exchange.
Jack Ehnes, CalSTRS chief executive officer and signer of the letter, outlined recommendations for reform in the areas of board independence, committee structure, regulatory responsibilities and transparency. The recommendations include:
CALSTRS INVESTMENT IN CALIFORNIA TOPS $2 BILLION
Program Targets Underserved Urban and Rural Communities, Promotes Economic Growth in State
SACRAMENTO – The California State Teachers’ Retirement System has surpassed the $2 billion mark for investing in the state’s urban and rural communities to help promote economic growth.
As of June 30, CalSTRS investments in these communities totaled $2.08 billion, or more than 2 percent of the system’s approximately $100 billion pension fund. This milestone is the first time CalSTRS has exceeded its goal of putting 2 percent of its investment into California’s emerging communities.
CALIFORNIA TEACHERS’ PENSION AND HOMESTORE SETTLE CLASS ACTION SUIT
Corporate Governance Reforms Highlight Settlement
SACRAMENTO – Homestore Inc. has agreed to reform its corporate policies and to pay approximately $64 million in cash and stock to settle a class action lawsuit accusing the Internet real estate company of falsifying financial statements and engaging in accounting irregularities.
California Teachers’ Pension Fund Earns 3.4 Percent for the Year
SACRAMENTO—In another sign the economy is on the rebound, the California State Teachers’ Retirement System recorded its first positive portfolio return in three years. The nation’s third largest public pension fund posted a 3.4 percent return, with assets totaling $100 billion, for the fiscal year ending June 30.
CalSTRS Calls on Shareholders to Support SEC’s Rules Study (Changes Would Give Shareholders Tool to Influence Corporate Governance)
Sacramento, CA – The California State Teachers’ Retirement System today called on its members and other shareholders to join it in supporting the Securities and Exchange Commission’s upcoming study of proxy rules. The SEC is soliciting public views through June 13.To assist interested parties in e-mailing comments to the SEC, CalSTRS posted a suggested message and submission instructions on its Web site, www.calstrs.ca.gov.
CalSTRS Seeks Fund-of-Funds Private Equity Managers for $100 Million New and Next Generation Managers Program
Sacramento, CA – The California State Teachers’ Retirement System today launched a search for one or two fund-of-funds managers to invest in a $100 million portfolio of private equity new and next generation managers. Final filing date for investment offerings is July 7. A copy of the Private Equity Investment Search document is available in the Investments section of the CalSTRS Web site, www.calstrs.ca.gov.
Unprecedented Ingersoll-Rand Vote Shows Momentum is Building In Campaign to Get Expatriate Companies to Come Home to America
Washington, DC – A cross-section of institutional investors, state treasurers and labor unions said today that an extraordinary shareholder vote at Thursday’s Ingersoll-Rand annual meeting proves momentum is building in the campaign to get American companies to return to U.S. soil from their off-shore tax sanctuaries.
Institutional Investors’ Full-Page Ad in USA Today Calls for Vote to Move Ingersoll-Rand Back from Bermuda
Washington, DC – Concerned about loss of shareholder rights and long-term investment returns, a cross-section of U.S.institutional investors, state treasurers and labor unions took out a full-page ad in USA Today on Tuesday (May 27) urging Ingersoll-Rand to “Come Home to America” from its off-shore tax haven in Bermuda.
“Ingersoll-Rand, with hundreds of millions of dollars in defense and homeland security contracts, operates from a mailing address on the sandy shores of Bermuda,” the ad reads. “That’s bad for shareholders.”
Leading Proxy Advisor Supports Call For Ingersoll-Rand to Come Home to America
For accessible versions of files on this page, contact ADACoordinator@CalSTRS.com.
CalSTRS Unveils “The Perfect Stock Option Plan”
Sacramento, CA – The California State Teachers’ Retirement System today released recommendations by Graef Crystal for reform of executive stock option plans. The paper, commissioned by CalSTRS, details what Crystal calls “the perfect stock option plan.” Crystal’s recommendations will aid CalSTRS in future executive compensation proxy votes and discussions with companies regarding corporate governance best practices.
Institutional Investors’ Full-Page Wall Street Journal Ad Builds Pressure on Tyco, Others to Return to U.S. Soil
Washington, DC – Concerned about loss of shareholder rights and long-term investment returns, a cross-section of U.S.institutional investors, state treasurers and labor unions took out a full-page ad in The Wall Street Journal today urging Tyco and other expatriate companies to “Come Home to America” from their offshore tax havens.
“Ahh, Bermuda,” says the ad. “A nice place for a vacation…but should U.S. companies take legal refuge there?”
Reincorporation Efforts Gain Momentum with ISS Recommendation Supporting Tyco Return to the U.S.
Washington, DC – Major institutional investors including public pension funds, union funds, state treasurers and others today applauded the Institutional Shareholder Services decision in favor of a shareholder proposal urging reincorporation of Bermuda-based Tyco back to the United States. ISS found Tyco has failed to make its case for locating in an off-shore tax haven.
U.S. Alternative Investment Advisor Named by CalSTRS
Sacramento, CA – The California State Teachers’ Retirement System has selected Cambridge Associates LLC as its advisor for U.S. alternative investment partnerships. Cambridge Associates will recommend U.S. partnerships, perform due diligence and assist and advise CalSTRS staff on those investment opportunities.
“Cambridge has the experience, philosophy and background we need to continue the excellence of our AI portfolio,” said Real Desrochers, CalSTRS director of alternative investments. “They have an outstanding ability to help us add value to the AI portfolio.”
CalSTRS Sues Qwest, its Officers and Directors and Financial Services Companies
Alleged Securities Fraud Cost California Teachers' Fund $150 million
Sacramento, CA – Qwest Communications and several of the nation’s top banking and financial service companies were named as defendants Tuesday in a lawsuit filed by the California State Teachers’ Retirement System in the financial collapse of Qwest.
The complaint alleges Qwest and the companies engaged in fraudulent schemes that cost the California teachers fund millions of dollars when the truth about Qwest’s faltering financial condition was first disclosed.
CalSTRS Expands Scope of Homestore Class Action Case
Sacramento, CA – AOL/Time Warner, Cendant Corporation and 14 other Internet-based firms were named Friday in an amended complaint alleging they contributed to the financial collapse of Homestore.com.
U.S. Alternative Investment Advisors Sought by CalSTRS
Sacramento, CA – The California State Teachers’ Retirement System seeks program advisers for U.S. partnerships in its alternative investment portfolio. A request for proposal was issued September 17 and the proposals are due October 21. A copy of the RFP is posted on the CalSTRS Web site at www.calstrs.ca.gov.
CalSTRS Urges Congress to Adopt Senate’s Investor Protection Act
Sacramento, CA – The California State Teachers’ Retirement System today called on Congress to adopt the tough protections in the Public Company Accounting Reform And Investor Protection Act of 2002, recently passed by the Senate.CalSTRS sent a letter urging passage of the act to each member of the House-Senate Conference Committee working out differences between the act and actions taken earlier by the House of Representatives.
Three California Pension Funds Sue WorldCom and Investment Banks for Fraud; Seeking $318.5 Million in Recovery from Executives & Underwriting Banks
SACRAMENTO AND LOS ANGELES-Three California public pension funds, representing $275 billion in assets, today announced a joint lawsuit to recover losses against WorldCom executives and the major underwriters of WorldCom bonds issued in May of 2001.
CalSTRS Adopts Investment Protection Principles
Sacramento, CA – The California State Teachers’ Retirement System today expanded its financial market reform initiatives to include protections against conflicts of interest by its brokers and investment managers.
CalSTRS will give significant consideration to compliance with the investment protection principles when selecting and retaining brokers and investment managers. CalSTRS will also conduct annual compliance reviews once the principles are adopted by the firms.
CalSTRS Names Altius Associates as International Alternative Investment Advisor
Sacramento, CA – The California State Teachers’ Retirement System has selected Altius Associates Limited as its advisor for international alternative investment partnerships. Altius Associates, with offices in London, Copenhagen and Richmond, Virginia, will recommend non-U.S. partnerships, perform due diligence and assist and advise CalSTRS staff on those investment opportunities.
CalSTRS Selects McKinsey & Company as Alternative Investment Consultant
Sacramento, CA – The California State Teachers’ Retirement System today selected McKinsey & Company as alternative investment consultant to its Investment Committee.
McKinsey & Company was chosen through a competitive process to work closely with the committee to monitor and comment on the AI portfolio performance and policies. McKinsey and Company will not review specific transactions.
CalSTRS Selects Lehman Brothers U.S. Aggregate Index As Fixed Income Portfolio Performance Benchmark
Sacramento, CA – The California State Teachers’ Retirement System today adopted the Lehman Brothers U.S. Aggregate Index (excluding tobacco) as its benchmark to track the performance of its internally managed long-term fixed income portfolio. The nation’s third largest pension fund, at $100 billion, examined various customized and broad market-weighted indices before selecting the Lehman Brothers index.
CalSTRS Selects Russell 3000 as U.S. Equity Portfolio Performance Benchmark
Sacramento, CA – The California State Teachers’ Retirement System today adopted the Russell 3000 (excluding tobacco) as its benchmark to track the performance of the broad U.S. equity market. The nation’s third largest pension fund examined three indices before selecting the Russell 3000.
CalSTRS Names Cotchett, Pitre, Simon & McCarthy Lead Counsel in Homestore.com Lawsuit
Sacramento, CA – The California State Teachers’ Retirement System today named Joseph W. Cotchett and Bruce L. Simon of Cotchett, Pitre, Simon & McCarthy as lead counsel in a securities class action suit against Homestore.com, Inc. and several former executives. CalSTRS is lead plaintiff in this lawsuit alleging Homestore falsified financial statements and engaged in accounting irregularities.
CalSTRS Sets Market Reform Priorities
Sacramento, CA – The California State Teachers’ Retirement System governing body has approved an extensive plan to promote financial market reforms. The Teachers’ Retirement Board set priorities for action as CalSTRS advances its corporate governance reform views on a national level.
CalSTRS Named Lead Plaintiff in Homestore.com Lawsuits
Sacramento, CA – The California State Teachers’ Retirement System today announced the U.S. District Court in Los Angeles has named CalSTRS lead plaintiff in more than 19 consolidated lawsuits against Homestore.com, Inc. and several former executives.
“We’re pleased to take on this responsibility to represent the many who have suffered from unfair dealings by a few,” said Jack Ehnes, CalSTRS chief executive officer. “Shareholders must actively pursue these claims to put a spotlight on improper business practices while seeking recovered lost value.”
Hewlett-Packard and Compaq Merger Opposed by CalSTRS
Sacramento – The California State Teachers’ Retirement System announced today it has cast its vote to oppose the merger of Hewlett-Packard Company with the Compaq Computer Corporation.
New Alternative Investment Consultant Structure for CalSTRS
Sacramento, CA – The California State Teachers’ Retirement System seeks consultants for a new governance structure in its alternative investment portfolio. Two requests for proposals were issued February 8, with final filing dates of April 5. The RFPs are available on the CalSTRS Web site at www.calstrs.ca.gov.
Chief Executive Officer Named for CalSTRS
Sacramento, CA – Jack Ehnes has been selected as the new Chief Executive Officer of the California State Teachers’ Retirement System. The Teachers’ Retirement Board announced its choice for the top administrative post today. Ehnes, 50, replaces James D. Mosman, who is leaving CalSTRS to become Executive Director of the National Council on Teacher Retirement.
Chief Executive Officer Resigns From CalSTRS
Sacramento, CA – James D. Mosman, Chief Executive Officer of the California State Teachers’ Retirement System, announced his resignation today. Mosman, 52, leaves in December to become Executive Director of the National Council on Teacher Retirement.
California Teachers’ Pension Names New Chief Investment Officer
Sacramento, CA — Christopher J. Ailman, chief investment officer at the Washington State Investment Board, has been named chief investment officer of the California State Teachers’ Retirement System. Ailman will manage the $115.8 billion portfolio starting October 10.
A 20-year veteran in investment management, Ailman has been WSIB’s investment chief for four years. Before going to Washington, Ailman spent eleven years at the Sacramento County Employees’ Retirement System where he served as CIO of the pension fund for the county.
California Teachers’ Pension Fund Earns 12.69 Percent for the Year
Sacramento, CA–The California State Teachers’ Retirement System recorded a 12.69 percent return on its investments for the past fiscal year. The nation’s third largest pension fund had assets totaling $112.66 billion—a $12.8 billion increase from the previous 12-month period.
California Teachers’ Pension Fund Names Director of Real Estate
Sacramento, CA – Mike DiRe has been selected as director of real estate for the California State Teachers’ Retirement System. DiRe, 38, has fifteen years experience in real estate and finance, most recently as a real estate portfolio manager at the California Public Employees’ Retirement System.
California Teachers’ Pension Fund Hires Pendleton James Associates for CIO Search
Sacramento, CA – The California State Teachers’ Retirement System has selected Pendleton James Associates to conduct a nationwide search for its new chief investment officer.
Pendleton James Associates is one of the top investment management consulting firms in the U.S., and has more than 20 years experience in the investment management job market.
Investment Chief Resigns from California Teachers’ Pension Fund
Sacramento, CA – Patrick Mitchell, chief investment officer of the California State Teachers’ Retirement System, has resigned. He leaves July 15, 2000, to pursue other career opportunities.
“This was not at all an easy decision to make, but the new economy is providing wonderful opportunities right now. The timing is excellent for me to begin the next phase of my life and career,” Mitchell said.
California Teachers’ Pension Fund Earns 18.3 Percent for the Year
Sacramento, CA — The California State Teachers’ Retirement System posted an 18.3 percent return on its investments for the past year. Assets for the nation’s third largest pension fund totaled $110.7 billion on Dec. 31, 1999, a $17.4 billion increase from Dec. 31, 1998.
California Teachers’ Pension Fund Earns 13.35 Percent for the Year
Sacramento, CA -The California State Teachers’ Retirement System recorded a 13.35 percent return on its investments for the past year. CalSTRS’ assets totaled $99.9 billion on June 30, 1999 – an $11.8 billion increase from the previous 12-month period.
California Teachers’ Pension Fund Hits Record $100 Billion
Sacramento, CA –The Teachers’ Retirement Board announced at its meeting today that, for the first time in its history, the Teachers’ Retirement Fund exceeds $100 billion in assets. To reach this financial milestone, the fund’s investment portfolio grew more than $13 billion since June 1998, continuing a five-year trend of annual returns of more than 14 percent.
California Teachers’ Pension Fund Goes Over the Top – State Teachers’ Retirement System Fully Funded
Sacramento, CA –The California State Teachers’ Retirement System has hit the goal of every pension plan. The Teachers’ Retirement Board learned today CalSTRS has enough money to cover the benefits already earned by California’s current educators without outside funds from the state.
The actuarial valuation presented to the board shows that as of June 30, 1998, CalSTRS had 104 percent of the funds needed to pay the cost of the benefit plan in effect in 1998.
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