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Calstrs issues first diversity report
04 March 2014
The investment management report to legislature will be filed annually as part of Senate Bill 294
The California State Teachers’ Retirement System
(Calstrs) submitted its first report to the California
Legislature outlining progress in bringing emerging managers
into the stewardship of its investments.
The report, Diversity in The Management of Investments 2014
Progress Report is a requirement under Senate Bill 294, which
became law in 2011. The report also reflects
Calstrs’ strategic goal since 2003 to bring
greater diversity to its external investment management.
"Reflecting the philosophy of inclusion ingrained in the work
and the ranks of California’s educators, Calstrs
seeks to increase the participation of emerging investment
managers, while enhancing returns at a prudent level of risk,"
said Calstrs Chief Investment Officer Christopher J. Ailman.
"That diversity mindset extends to our 108-strong Calstrs
investment staff, comprising wide-ranging backgrounds and
Calstrs’ strategic goals on diversity fall into
three broad categories: Calstrs investment staff; the
challenges identified in the "four pillars" of real estate,
corporate governance, global equity and brokerage services; and
Calstrs’ foundation of existing programs.
The four pillars—real estate, corporate governance,
global equity and brokerage services—present some of
the toughest challenges to incorporating diversity in the
management of investments across the Calstrs portfolio.
Calstrs focuses on meeting four goals. They are: increase the
diversity of real estate external managers handling Calstrs
funds; increase the diversity of corporate boards of directors;
develop a direct relationship program with equity managers to
move managers from the Calstrs developing manager program to
Calstrs’ core portfolio; and increase the
diversity of firms providing brokerage services to
"However we approach our goals, we keep in mind the Calstrs
core value of strength, which says, "We ensure the strength of
our system by embracing the diversity of ideas and people,"
Ailman said. "It’s why we continue to be
recognized as an industry leader. We don’t rest on
our laurels, and developing new, diverse and talented asset
managers is a key part of our strategic plan."