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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
"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 Calstrs.
"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