Scott Chan is shocked the market hasn't reacted more to the crisis emulating from the US-Israel-Iran conflict. But the CalSTRS CIO is confident its one fund approach allows it to position dynamically and ensure diversification no matter what is presented.
A breakdown of CalSTRS’ investment costs confirms the cost savings of internal asset management, with the fund’s internal asset management costs making up only 0.07 per cent of the total portfolio management costs, but comprising 30 per cent of the total assets managed.
A group of institutional investors, led by CalPERS’ chief investment officer, Joe Dear, have dictated to US lawmakers that specific reforms must be made or the country could be in another crisis.
CalSTRS will double the ranges of its active/passive global equities allocations in a bid to enable investment staff to allocate funds tactically across active and passive rather than be forced to rebalance to strategic asset allocations.
CalPERS and CalSTRS have collaborated to build a network of more than 150 individuals from a diverse pool of sources to act as potential candidates for nomination to corporate boards, as CalPERS’ consultant advises it to synchronise proxy votes between internal and external portfolios.
CalSTRS has named three consultants in its shortlist to act as general consultant, including for the first time Meketa Investment Group, long-time consultant to Harvard Management Corporation and more commonly known as a specialist in infrastructure, under a new tiered approach to the use of consultants introduced by chief investment officer, Chris Ailman.
CalSTRS staff will present to the investment committee the first of three reports on the optimal balance between active versus passive in its global equity and fixed income portfolios, a process that will culminate in recommendations for any structural changes in February next year.
Top1000funds.com is the market leading news and analysis site for the world’s largest institutional investors. It focuses on leading the global investment industry to continuous improvement through case studies of best practice in governance and decision making, portfolio construction and efficient portfolio management, fees and costs, and sustainable investing.
The publication pushes the industry to question whether status quo processes and behaviours to tackle risks and opportunities will be sufficient in the future, and actively campaigns for diversity, sustainability, transparency, innovation and better alignment of fees in the investment industry.
Top1000funds.com is read by investment professionals in more than 40 countries.
Featured Story