[{"_1":2,"_124":-5,"_125":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100,112],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6672413,"mediaKeyId","2123958-c77961a9c545f0e4191ff05186dab26e","parentId",2123958,"title","Investment Committee approves consent agenda items","audioSeconds",27,"startMs",8341000,"endMs",8368000,"viewUrl","/Search/View?dp=1&key=2123958-c77961a9c545f0e4191ff05186dab26e&start=8341&end=8368","thumbnailUrl","https://assets.pipeline.soar.com/2123958-c77961a9c545f0e4191ff05186dab26e/thumbnail_8341000.jpg","articleUrl","/articles/6672413/California/Investment-Committee-approves-consent-agenda-items","mediaUrl","https://secure.pipeline.soar.com/6672413-308e7d25051a838ea81e81cf742e8277/orig.mp4?Expires=1773637278&Signature=NoCTpxxc5~qD2Tt9cWiRVW0qkWJDM3li3wgets-sSIAU~vm6JvwS4sezzyvbcqXzKLlQLNApdC~37AzmgFcqJqc6WMNxTfCIvJ9QBPXDtSQk5oRG45HnLsQ7kTXdcf95rx7yvzNuyS25aCUsQYTUEzu8DZ2kIdJjTBvbRYnaX3SMAzPbgaJYztAYn19CPXcFs1x8Dzcxf~zTs0dW4IA3lT9~JBdkxE69q-yKnAkjHD69uRl7uKHyK8e0xP9Ne2bO~xrNNThNq9awi8JzoTfNVaY-NYqpei~ze7Z0qxPbNjo457o~8z46L0G9I4lg9PlQcgQ9A6etaP1wLvLSour4rA__&Key-Pair-Id=KUT5TJCACFTXG","author","California State Teachers Retirement System","date","2025-01-16T22:16:06.503Z","article","The Investment Committee approved the consent agenda (items 9 and 10) by roll call during the Jan. 8, 2025 meeting. The motion to approve was moved and seconded; the committee recorded affirmative responses during the roll call and the motion carried.

The chair opened the consent motion, a committee member moved approval and another member seconded. Roll-call responses recorded multiple \"aye\" votes and no opposing votes were announced. The approval was entered in the meeting record; staff noted no items were pulled for separate consideration.

","mediaType","Video","parentTitle","Investments - CalSTRS Board Meeting January 8, 2025","oneSentenceSummary","The Investment Committee approved consent agenda items by roll call at the Jan. 8 meeting; the motion was moved and seconded and the committee recorded affirmative votes.","taxTitle","California State Teachers Retirement System, Agencies under Office of the Governor, Executive, California","taxId",70080,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6672418,"CalSTRS creates Total Fund Management division to coordinate liquidity, pacing and risk",609,6985000,7594000,"/Search/View?dp=1&key=2123958-c77961a9c545f0e4191ff05186dab26e&start=6985&end=7594","https://assets.pipeline.soar.com/2123958-c77961a9c545f0e4191ff05186dab26e/thumbnail_6985000.jpg","/articles/6672418/California/CalSTRS-creates-Total-Fund-Management-division-to-coordinate-liquidity-pacing-and-risk","https://secure.pipeline.soar.com/6672418-24525d94acea8768e3251963955cc788/orig.mp4?Expires=1773637278&Signature=ZJIVAuDWFRPCjh-YlNSbcmrs6kXm1NXUrXEzVnjHU03IekDZdquoCVUvi2ed~H91jtk9kNrqVf1Pt2zVM3Afg-GrEpkYEx~lmANiZRWBe-uTBI8yjHRHkfrPE~L5wZnbLjIElD0XqYyxe7YEm4-eW6tpodcRObEACusHqwMzFNXZadGjp~zWKCbe7FASC-4vKkr0c6n4floixA5MNprg-qkWKBnLdEm6w42UHPgqpDha6IDXaVORkaIsUSOxgIzsIQQfZyYyJWbWb224qp~LMugHkCFH59UJY9rJr4tRnY7OU0tEmKRPHf~-9Dt2wPEAmnydBGrXq8512iZ07sHm1g__&Key-Pair-Id=KUT5TJCACFTXG","At the Jan. 8 Investment Committee meeting, CalSTRS introduced a new Total Fund Management (TFM) division that centralizes liquidity management, pacing and risk-budgeting functions for the total fund. June Kim, senior director of the division, said the unit will coordinate across asset classes to improve risk-adjusted returns and to provide a single point for liquidity planning and balance-sheet management.

Kim described three core TFM functions: risk management, asset allocation and portfolio construction, and enhanced balance-sheet management. The unit brings together existing workstreams — the Risk Allocation Committee (RAC), a newly formed liquidity committee (led by Geraldine Jimenez) and a pacing committee (led by Mike DeRae) — and aims to integrate them with more centralized processes and improved data flows.

Josh Dedish, senior portfolio manager in TFM, said the team will expand risk reporting and risk budgeting capabilities and will incorporate liquidity projections and pacing information into annual allocation planning. \"We want to understand where risk is taken at a detailed level and make sure the fund is being compensated for that risk,\" Dedish said.

Staff said TFM is a continuation of work already underway, not a wholesale change in investment strategy. The division will initially operate with a small team (about nine staff) and is expected to evolve as the fund's private-market allocations and liquidity needs grow. The division's goals include lowering inefficiencies, better coordinating capital between public and private asset classes and creating tools to capture additional total-fund alpha.

Directors asked whether the new structure represents a cultural shift for staff; presenters said the change formalizes collaboration and centralizes coordination while preserving specialized teams for asset-class expertise. The committee will receive future education sessions, demonstrations of new reporting tools and follow-up proposals as the division builds out its capabilities.

","CalSTRS announced a new Total Fund Management (TFM) division to centralize liquidity, pacing and risk budgeting, with three committees (RAC, liquidity and pacing) and a nine-person team tasked with improving total-fund risk-adjusted returns.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6672423,"CalSTRS review finds risk-mitigating strategies met objectives during major drawdowns",255,6131000,6386000,"/Search/View?dp=1&key=2123958-c77961a9c545f0e4191ff05186dab26e&start=6131&end=6386","https://assets.pipeline.soar.com/2123958-c77961a9c545f0e4191ff05186dab26e/thumbnail_6131000.jpg","/articles/6672423/California/CalSTRS-review-finds-risk-mitigating-strategies-met-objectives-during-major-drawdowns","https://secure.pipeline.soar.com/6672423-c41351086f33a93758481bf7631f082d/orig.mp4?Expires=1773637278&Signature=YmzsXnTuZzCUzlQ~rAtFxJ0IFv43qG2DTNQo63VADmqZuyxxlwamzTOB0m6~pyeMst~8rkQ4KZGFn0CL~~NH0veMnfJLGpnIBU1qLQaYvEBKUVsR0odPH5465ljZgtzZRyYojFUbH0iQKaptkvlQFdBoQIfEiwL86v9UKvD~V9~6Gq1nWcuLU83NOz523GOrRK9XVOCyTft-Hx1nFWwIPkdKwYn59WSwJ5LMakh-uADE2naH3oTiR9v1bOxui7NXen3pFv7AfPqd4uZzJD3m4IGxucDcgFjnaKnMdvfUHJ2T4UxNgSv62Ion6-cNAH~lPAKS7JW3mZ8ncs8SJsgQaw__&Key-Pair-Id=KUT5TJCACFTXG","The Investment Committee received a strategic review of CalSTRS' Risk Mitigating Strategies (RMS) program on Jan. 8, 2025. Staff and external consultants said RMS was designed to protect the fund during large equity drawdowns and has met that objective since its inception in July 2016.

Carrie Lowe, a portfolio manager who has worked with the RMS program since its inception, told the committee RMS is intended to \"protect a lot like insurance, but without an explicit premium.\" Lowe described two episodes in which RMS performed as intended: the COVID-related drawdown in 2020 and the market shock in 2022 following Russia's invasion of Ukraine and high inflation. In both episodes RMS returned nearly 6% and, in 2022, provided roughly $2 billion of capital that supported CalSTRS' liquidity and benefit payments.

Staff presented analysis showing that, had CalSTRS replaced RMS with long-duration fixed income since 2016, the system would have experienced a larger loss in the 2021–22 fiscal year. The staff-and-actuarial comparison estimated RMS reduced a 3%-plus loss to about 1.3%, an improvement staff said translated to approximately $5 billion in funding-status benefit compared with the fixed-income alternative.

External advisors from Auburn and Makita supported the staff conclusion and noted RMS is a specialized, functional component of the total fund rather than a conventional asset class. James Walsh of Auburn said the program is well constructed and praised the staff for governance processes. Mika Malone of Makita emphasized that RMS construction requires bespoke manager selection and ongoing evaluation because it has no single market benchmark.

Staff said RMS must keep evolving to address shifting market structure and the fund's growth, and they will present further implementation specifics and policy options in closed-session and at a March follow-up. The committee asked staff to consider implementation details, strategy mix, fee arrangements and how to scale the program as the fund grows.

","CalSTRS staff and consultants told the Investment Committee that the system's Risk Mitigating Strategies (RMS) program met its objective since 2016, performing in major equity drawdowns and supplying liquidity in 2022; staff said RMS will continue to evolve and staff/consultants will propose policy refinements.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6672428,"CalSTRS outlines private markets work plan to strengthen oversight, education and processes",662,2644000,3306000,"/Search/View?dp=1&key=2123958-c77961a9c545f0e4191ff05186dab26e&start=2644&end=3306","https://assets.pipeline.soar.com/2123958-c77961a9c545f0e4191ff05186dab26e/thumbnail_2644000.jpg","/articles/6672428/California/CalSTRS-outlines-private-markets-work-plan-to-strengthen-oversight-education-and-processes","https://secure.pipeline.soar.com/6672428-e7a71cf50e35b236b05308e98e1e8e6c/orig.mp4?Expires=1773637278&Signature=hd0IpjwlbWQpj-0mYH6Y59a0r~V1UjVVjUTTPfxPPYIkkjvzivSC0PNEJY6ZGRPdHkRGNgIEFHsOEtYL2Ri6R6uo9fSeX0QlHc5Hff0XdyIY1v7W2yCh1NpeWNBQRqUZ-5z1vrbniH36RFsf8~a39JjgxW5GJuhZQCLrejxXn-scuDAKQkm9en9bXiaaOc9EUPhN-48fB4rwKmiJ-KkY1a5nOcnhI8DyCtMU4-uftw-3uEfZpTqDi9BExzonBaR3e6y5lp17vnTzbUpvrh0APPn89W8HmhyM2ZRM~BVko4PyAeWG9PP9igJyVWxfx4BbUJ62Bzi6FaiFRkK1RkYR1w__&Key-Pair-Id=KUT5TJCACFTXG","At the Jan. 8 Investment Committee meeting, CalSTRS staff presented a private markets work plan aimed at improving oversight across the system's growing allocation to private assets. Staff said the work plan will run over the current and next fiscal year and focuses on four components: education, investment-based practices, roles and responsibilities, and processes.

Scott Chan introduced the item as informational and said staff seek feedback and guidance rather than board action. Kirsty Jenkins, director of Sustainable Investment and Stewardship Strategies, described the proposed approach: an education program for board and staff, a review of investment beliefs and related policies, clarification of roles among the board, consultants and staff, and streamlined processes for communication, due diligence and external stakeholder input.

Staff emphasized that private markets now represent a material share of the fund and that the work plan seeks a holistic lens that includes public markets where useful. \"We want timely, holistic oversight of our private market assets,\" Jenkins said. The presentation noted that private markets currently make up a much larger portion of the portfolio than in earlier decades and cited the importance of aligning governance and information flows accordingly.

Board members asked about coordination with the SIS team and public affairs to avoid duplicative outreach; staff said the work is a joint effort led by private markets with close collaboration across investment, legal and communications teams. Directors also asked whether the work plan accounts for differences among private asset types. Staff replied the plan will address asset-class-specific governance while maintaining common program-level practices.

Public commenters on the item urged CalSTRS to include workforce management and labor protections in private-equity principles. Doug Warr, chair of the CFT Retirement Policy Committee (caller), told the committee limited partners have constrained voice after allocating to general partners and urged clear, enforceable principles for private equity that include workforce protections and the same ESG criteria applied in public equity. Don Stauffer (in person) asked that private debt funds be identified and governed consistently rather than categorized under public equities when appropriate.

Staff told the committee they will return with more detailed next steps and a timeline, including education sessions for board members and proposed policy reviews. The item was informational; no vote was requested.

","CalSTRS investment staff proposed a multi-year work plan on private markets governance focused on education, investment practices, roles and responsibilities, and processes; public commenters urged workforce protections and clearer categorization of private debt.",{"_33":113,"_35":36,"_37":38,"_39":114,"_41":115,"_43":116,"_45":117,"_47":118,"_49":119,"_51":120,"_53":121,"_55":56,"_57":58,"_59":122,"_61":62,"_63":64,"_65":123,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6672431,"CalSTRS investment committee updates stewardship priorities, highlights workforce disclosure, methane and AI engagement",1655,665000,2320000,"/Search/View?dp=1&key=2123958-c77961a9c545f0e4191ff05186dab26e&start=665&end=2320","https://assets.pipeline.soar.com/2123958-c77961a9c545f0e4191ff05186dab26e/thumbnail_665000.jpg","/articles/6672431/California/CalSTRS-investment-committee-updates-stewardship-priorities-highlights-workforce-disclosure-methane-and-AI-engagement","https://secure.pipeline.soar.com/6672431-7ee4a2308a1f154e6ab3fb10b6f52f0a/orig.mp4?Expires=1773637278&Signature=kaVjsatuGEFXnZpqCZX3JgVg6vOoBwUcTS~F0wyL7PgYdHT2-HPxBJykpyem~9QO7rhtu-GiBBQLbk2qs9PICxtU4K4XPRcGdFByc68LPWlaf7mugSGtkaPoHMRZxPazMx8lo6CpvbBIaOvHkEhzGW8f-VvVYu1wku8AfnjYMZN~EaO029gAfqRJpzwwT38lYCBgEhzg3vvaqxEWPfYxzjSejIYGpoUfnuu8qKwSjdTt5eB~89CWLIONwDf-suE36ZmhthdsJQuJ87HSzYRbHYdC-e5~A-vSbutWg640153oA6hXlepUSuQzJQRUyiPWaTwYewZAI4I1S3-B71GEaw__&Key-Pair-Id=KUT5TJCACFTXG","At its Jan. 8, 2025 meeting, the California State Teachers' Retirement System Investment Committee received an annual update on stewardship priorities from staff of the Sustainable Investment and Stewardship (SIS) unit, who described engagement activity and early outcomes across human capital disclosure, climate-related work streams and new focus areas such as artificial intelligence and biodiversity.

CalSTRS staff said stewardship is intended to mitigate portfolio risk, support long-term value creation and promote sustainable practices aligned with the system's duty to its teachers. Ayesha Mastagni, senior portfolio manager in the Sustainable Investment and Stewardship Strategies unit, told the committee the team uses three criteria when selecting priorities: relevance to long-term fund performance, capacity to influence change and the ability to deliver measurable outcomes. \"We set up a three-year plan because stewardship doesn't happen overnight,\" Mastagni said.

Staff reported progress on several long-running initiatives and described new engagement streams. Lynn Paquin, a portfolio manager with SIS, said the team engaged 478 public companies in 2024 representing roughly $46.5 billion of combined market value and that public disclosure of human capital management metrics has risen from about 5% of S&P 500 companies in 2020 to over 75% today. \"We have seen some good progress,\" Paquin said of workforce data disclosure.

Niall Gerritsen, portfolio manager leading climate engagement work, summarized three net-zero-related efforts: continued leadership in Climate Action 100 engagements, a targeted list of 45 high-emitting public companies not previously engaged by major initiatives, and a focused campaign on methane emissions from oil and gas operations. Gerritsen said methane is a tractable target because leaked gas can be captured and sold; he added that 33 portfolio companies have joined the United Nations methane framework so far, and roughly 10 of those joined after direct engagement by CalSTRS staff.

On diversity, equity and inclusion, staff described rapid responses when several large companies announced rollbacks of DEI programs in 2024. Rekha Vaitla (staff lead on related work) said the stewardship team wrote to companies that announced rollbacks and had had roughly 10 follow-up meetings. \"The vast majority told us they are not dropping programs entirely but are pulling back on sponsorships and changing language,\" Paquin said. The team said it will monitor reporting in the upcoming proxy season for any substantive program changes.

Staff also noted expanding engagements on responsible firearms retailing and on artificial intelligence. Michael Weston leads the firearms work, meeting with retailers and payment providers to review legal sales practices and employee/community safety programs. On AI, staff said they are in a learning-and-engagement phase, incorporating AI-related questions into existing dialogues with portfolio companies and broadening outreach to new sectors such as health care to assess governance, energy demand and workforce implications.

Biodiversity was added as a new stewardship focus in late 2024 when CalSTRS joined Nature Action 100; staff said they currently participate in engagements with four food-and-beverage companies and expect to deepen learning during 2025. Mastagni said the team will continue to prioritize actions where investor engagement can change corporate behavior and provide measurable outcomes for the fund.

During Q&A, State Treasurer Frank Ruffino asked whether CalSTRS has contingency measures to ensure consistent climate-related reporting if U.S. rulemaking stalls. Mastagni and Gerritsen replied that CalSTRS supports the International Sustainability Standards Board as a global baseline and expects large companies to retain core KPIs even if some reporting formats change. Steve McCourt, an advisor in the meeting, praised the stewardship work as \"market-leading\" and focused on risk mitigation for the fund.

Staff said they will report back on metrics and outcomes in the quarterly engagement report and at the next annual update.

","CalSTRS staff presented the annual stewardship priorities to the Investment Committee on Jan. 8, 2025, reviewing public-company engagement results, human capital disclosure progress, targeted methane work, responses to corporate DEI rollbacks, and early-stage artificial intelligence and biodiversity engagements.","actionData","errors"]

Article not found

Investment Committee approves consent agenda items

CalSTRS creates Total Fund Management division to coordinate liquidity, pacing and risk

CalSTRS review finds risk-mitigating strategies met objectives during major drawdowns

CalSTRS outlines private markets work plan to strengthen oversight, education and processes

CalSTRS investment committee updates stewardship priorities, highlights workforce disclosure, methane and AI engagement