[{"_1":2,"_112":-5,"_113":-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],{"_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",6627137,"mediaKeyId","2730121-aa8ef68d720a3b371c194ebd33e59d04","parentId",2730121,"title","Consultants report to CalSTRS: long-term private markets outperformance persists; real estate allocation down from peak","audioSeconds",1975,"startMs",4840000,"endMs",6815000,"viewUrl","/Search/View?dp=1&key=2730121-aa8ef68d720a3b371c194ebd33e59d04&start=4840&end=6815","thumbnailUrl","https://assets.pipeline.soar.com/2730121-aa8ef68d720a3b371c194ebd33e59d04/thumbnail_4840000.jpg","articleUrl","/articles/6627137/California/Consultants-report-to-CalSTRS-long-term-private-markets-outperformance-persists-real-estate-allocation-down-from-peak","mediaUrl","https://secure.pipeline.soar.com/6627137-f0ff3f091fae7376307ee42848098893/orig.mp4?Expires=1771162681&Signature=gH6r8kdbCljpiAHh2IXUcn4XlqmuUeWcBVWpvojlF6YsKUkQy~7omiT0SK7YaPMno3PA9VQVdukCA77CNNlr~5BIVso7AII5EG3hiDMDTuVp3NqAfwomN1K8tCmscIuRRDq~Jz3ZIIT7rs0c61atEGAZiCiHFaeOpqRQ1IKvSY0SQ~wvixOcDyTSxXZAaG~cshqvJt3A1AU7X888IzdhgIm7-nU~bNCiTzvKXkprKs34IZX6bgK3e8Dg2Rb3nRGWADlIlIoE6z9j0ob5Y7y5bFvlwiCfJ7viIhgTe58bTa~Q2CFeQ7zv~qjZdL0PjQvu1cyshlTSkin~8BaSYPn1xQ__&Key-Pair-Id=KUT5TJCACFTXG","author","California State Teachers Retirement System","date","2025-03-21T19:16:00.393Z","article","CalSTRS’ general consultant (Makita), the real estate advisor (RFA) and private-equity consultants presented semiannual oversight reports to the Investment Committee on March 12, 2025, highlighting long-term outperformance for the fund and sector-specific dynamics for real estate and private equity.

Makita reported the CalSTRS total fund returned 7.7% for the trailing one-year period (to Dec. 31, 2024), beating policy benchmarks by 70 basis points but trailing a simple 70% global equity / 30% fixed-income reference in that one-year window because public equities outperformed private markets in the period. Makita noted that over a 10-year horizon the fund returned 7.8% annualized, ahead of policy and peer medians. The consultant emphasized that returns through private markets have historically added value to CalSTRS’ total portfolio, and that the fund’s collaborative model and manager selection have produced significant fee savings and favorable long-term results.

Real estate advisors reported the real estate allocation declined to roughly 13.2% of the fund, about 200 basis points below the 15% target, driven in part by a roughly 20% decline in appraised real-estate values from peak while public equity values rose. RFA noted long-term outperformance versus benchmark on a 10-year basis, but underperformance in the one-year period tied to continued weakness in office and life-science office exposures. RFA’s speakers said staff is focusing on reallocating toward higher-growth sectors (industrial, multifamily) and reducing office and life-science concentration.

The private-equity consultants reported continued long-term strength for buyout and co-investment returns. CalSTRS’ private equity program has substantial scale and a large collaborative co-investment portfolio; co-investments continue to deliver attractive net returns and fee savings. Consultants noted slower distributions and fewer exits in recent periods, which has lengthened fundraising cycles and given limited partners more negotiation leverage. They also described how valuation multiple expansion in public markets has raised transaction prices in some private deals, a factor the committee should monitor.

Across the presentations, consultants and staff stressed the importance of manager selection, the fund’s collaborative/co-investment approach and the role of private markets in diversifying the total fund over long horizons. Committee members asked about aligning independent-fiduciary processes across asset classes; staff agreed to review consistency between real estate and private equity approaches and report back.

No committee action on allocations was taken during the public session; consultants will continue to provide semiannual reporting and staff will bring specific implementation proposals back as needed.","mediaType","Video","parentTitle","Investment Committee - CalSTRS Board Meeting March 12, 2025","oneSentenceSummary","Makita and other consultants told the CalSTRS Investment Committee their semiannual reviews show the total fund has outperformed a 70/30 reference portfolio over long horizons, private markets remain a source of excess return, and real estate allocations have dipped below target because appraised values fell from peak while public equities rose.","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},6627142,"Teachers, beneficiaries urge CalSTRS to divest from Tesla and other companies during public comment",309,1000000,1309000,"/Search/View?dp=1&key=2730121-aa8ef68d720a3b371c194ebd33e59d04&start=1000&end=1309","https://assets.pipeline.soar.com/2730121-aa8ef68d720a3b371c194ebd33e59d04/thumbnail_1000000.jpg","/articles/6627142/California/Teachers-beneficiaries-urge-CalSTRS-to-divest-from-Tesla-and-other-companies-during-public-comment","https://secure.pipeline.soar.com/6627142-c76b487957fa3b15b3d4865e1862a768/orig.mp4?Expires=1771162681&Signature=Xkm4QGgmuZK~f4GVruyeDH8FZpi0I2NSbWwoSKnWdfQWatkWK7V5vrTH6IrEGaGqZB9BLtxNJ-iyoBbYjz1GWNhKJWV9Ha9hxELIXxJykKSN0me8kr3Ijnhn~DRCd0xZhzevUbdtKE98yEZhfqYHqmjRLjgHSpZX051Km5g-N86wuXuJFjg7d1fUrptqOuBCfWgvF-2l38Nnxu8Nof98BUKzGh36M6VEcOvaD~2y9mU08U-Y7pJbKJLK4GaXJFphPnRi-oH53R3Cwh9-laE5VpNBuv0Mq8AuINikOyLWZxfiXwSIK~FdicXanG9udKSzY0tQw9rtv67Pmqk02kZxiQ__&Key-Pair-Id=KUT5TJCACFTXG","Several speakers addressed the Investment Committee during the public-comment period on March 12, 2025, urging the California State Teachers Retirement System to divest holdings in Tesla and other companies they said pose financial and moral risks.

Edward Hasbrook, who identified himself as the spouse of a teacher and a CalSTRS pension beneficiary, urged the fund to sell its Tesla holdings, saying, “Sell Tesla all of it now.” He told trustees he believed divestment was both financially prudent and morally warranted. Retired San Francisco teacher Ruth Rudetsky also called for divestment from Tesla, saying she was “horrified to find out that CalSTRS had more than a billion dollars invested in Tesla,” and argued for prompt action and public communication if staff had already begun selling.

Other speakers echoed calls to divest from Tesla and broader fossil-fuel investments. Jared (last name not specified in the record) criticized Heritage’s anti-union campaign tied to a grocery operator and urged CalSTRS to hold Apollo accountable for workplace and human-rights concerns at portfolio companies. Doneisha Lugo, a community college professor, told the committee she supports divestment from companies that “do not support the values and vision of the California educational system.”

Staff and trustees accepted the public comments into the record but did not propose or take a formal vote on divestment at the meeting. Counsel reminded the committee members that federal preemption and the National Labor Relations Act constrain certain actions and public disclosures when an ongoing labor dispute exists; staff said follow-up and any company-specific engagement would proceed through existing investment and governance processes and, where appropriate, in closed session.

The committee did not announce any immediate changes to investment positions on the record during the meeting.","Multiple public commenters and email submissions urged CalSTRS to divest holdings in Tesla and other companies, citing financial risk and ethical concerns. Trustees did not take immediate action on divestment during the meeting.",{"_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},6627148,"CalSTRS CIO warns of ‘unprecedented, world-changing’ policy risk; outlines liquidity and diversification steps",192,1449000,1641000,"/Search/View?dp=1&key=2730121-aa8ef68d720a3b371c194ebd33e59d04&start=1449&end=1641","https://assets.pipeline.soar.com/2730121-aa8ef68d720a3b371c194ebd33e59d04/thumbnail_1449000.jpg","/articles/6627148/California/CalSTRS-CIO-warns-of-unprecedented-world-changing-policy-risk-outlines-liquidity-and-diversification-steps","https://secure.pipeline.soar.com/6627148-b8c925f87e98dded497094a76194e569/orig.mp4?Expires=1771162681&Signature=ktYQQnSxOg3fcqbFVA-Kk7UGOBxIF3NcBPNTWGhd6k5GW9YaeAB61Q7KyOlKYR5IimoXHnmW84ZunCKJdbpkx8zh64EY3oNzaXqs~ynwtSRJ-CJhqhtCDmA0FW1ThmEMrVoIFOI2gtcjUTkWKqwRMJKLc7Eo4Yp-bp7cxnzjauQ5NUL88VtfCN7jEdSfA3EPGYOqadlX~sT-PcWpvtmFiVerHxXWi4MUiAOdQ-gYr6wRgU~U6jvjTq14CxLK2MXcBoawQFOB3mFaOc6F62Fi7hJHmr2pa-rudEYPh5KmQeZGpA19sJEVTiZALXHXPTcPNOjRPdRmVjiG2h1NVt0jAQ__&Key-Pair-Id=KUT5TJCACFTXG","Scott Chan, CalSTRS chief investment officer, told the Investment Committee on March 12, 2025, that recent policy shifts are producing an unusually high degree of market uncertainty and that the fund has positioned its portfolio to increase liquidity and diversify away from concentrated equity risk.

In a prepared report and subsequent questions from trustees, Chan said the four main policy-driven risks he is monitoring are tariffs (and the potential for a trade war), the Russia–Ukraine conflict and related geopolitical risks, a widening federal deficit and immigration-related impacts on GDP. “I just came up with the words unprecedented and world changing,” Chan said, describing the potential effects of aggregated policy moves on markets and economic growth. He added that this environment has increased the probability of recession and, in some scenarios, a short bout of stagflation.

To prepare, Chan outlined four layers of portfolio positioning: maintaining a diversified strategic asset allocation informed by liabilities; an annual asset-allocation plan to shift positioning over one- to three-year horizons; tactical positioning through the Risk Allocation Committee (RAC); and active risk-management and liquidity tools. He said the fund has increased allocations to defensive diversifying assets, reserved liquidity to exploit crisis-driven opportunities, and is accelerating selective private-markets allocations where managers can deliver higher risk-adjusted returns.

Chan said CalSTRS has strengthened several tools since prior crises — expanded liquidity tools, a total-fund management team, and a more deliberate annual asset-allocation process — and that the fund will use those tools if markets deteriorate. “We need to stay the course,” Chan said, arguing a long-term, diversified strategic allocation gives the best chance to meet the fund's return objective even if short-term volatility causes temporary losses.

Trustees asked how the RMS portfolio, fixed income and cash are being used within the diversifying bucket. Chan and RMS staff explained that public fixed income has recently been overweighted relative to RMS because of expected total-return advantages in the current rate environment; staff said the mix between fixed income, RMS and cash will be dynamically adjusted as conditions evolve.

Trustees also pressed staff about private markets governance and labor and human-capital risks. Counsel reminded the committee of federal preemption and the National Labor Relations Act limits on certain public disclosures or operational involvement when an ongoing labor dispute exists; staff said detailed, transaction-specific discussions would continue in closed session where necessary.

Chan concluded that staff expects the year ahead could present meaningful drawdowns and that the fund’s earlier work to enhance liquidity and risk tools increases CalSTRS’ flexibility to respond.","CalSTRS Chief Investment Officer Scott Chan told the investment committee that policy-driven uncertainty — tariffs, geopolitical conflict, deficits and immigration policy — raises recession and stagflation risk and described steps the fund is taking to increase liquidity and diversify into private markets and fixed income.",{"_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},6627152,"CalSTRS investment committee approves revisions to Risk Mitigating Strategies policy",1350,3474000,4824000,"/Search/View?dp=1&key=2730121-aa8ef68d720a3b371c194ebd33e59d04&start=3474&end=4824","https://assets.pipeline.soar.com/2730121-aa8ef68d720a3b371c194ebd33e59d04/thumbnail_3474000.jpg","/articles/6627152/California/CalSTRS-investment-committee-approves-revisions-to-Risk-Mitigating-Strategies-policy","https://secure.pipeline.soar.com/6627152-d86bb07301d5593238d9b5276aeb192e/orig.mp4?Expires=1771162681&Signature=nR4gghx1ri9plrZE1BGdlBNsw6sqGimJaRPDm4onIcuslVxEAzxRlZeAVqB5NHLFUMQxSPsQfKgCAJvDQgjDoiJr1TgL--D8IOF2eTUw-BZ0dabsv5PRHFJImNgFdRUd5dWNUOsDysTJamVPli~jvICJAr4-J3z8LNKpMjilSrSOwVzzMs0Nn8~p9MTV0zbmyEKcfauaAKEQYJdozsWMJkdNChqRmiMChctfXYuiAihCFDyhuCR8VIsbVFo8HuNUgSXAU~R-i7s5-FxCf3SbbAp1bpler6W5tq3c2Ss94~fEVYC7O4agZGCkhLVo2OsvSs9eCTXPEKZP-gXKiHDhew__&Key-Pair-Id=KUT5TJCACFTXG","The California State Teachers Retirement System (CalSTRS) Investment Committee voted to adopt policy revisions for its Risk Mitigating Strategies (RMS) program on March 12, 2025, approving changes that reframe RMS as a portfolio rather than an asset class and add new descriptive categories for underlying strategies.

The committee moved the item from information to action and approved the revisions in a roll-call vote after staff and consultants described the proposed changes. Senior investment director Geraldine Jimenez and RMS staff presented the revisions; Jeff Jarrow, speaking for the RMS team, said the policy would add “defenders” and “diversifiers” to clarify each substrategy’s role. Jarrow described defenders as “those strategies that are generally the most responsive during a market crisis,” and explained that broadening substrategy ranges would reduce forced rebalancing and allow staff more flexibility to position the portfolio for volatile markets.

CalSTRS staff and outside consultant Makita Investment Group told the committee they supported the changes. Makita’s Noma Malone said the defender/diversifier framing is a “helpful way to frame the context” and concurs the edits will modernize and simplify the policy’s language.

The motion to consider the RMS policy as action was moved by Trustee Karen Yamamoto and seconded by the state controller. The roll call recorded the following votes in favor: Director of Finance Whitaker (yes), Controller Cohen (yes), Mr. Tang (yes), Trustee Yamamoto (aye), Trustee Bradford (yes), Trustee Hendricks (yes), Mr. Gunning (aye), Mr. Ruffino (yes), Mr. Garfinkel (yes), Mr. Juarez (aye) and Chair Keeley (aye). No nay votes or abstentions were recorded. The committee chair announced, “The motion passes.”

Staff described several targeted wording changes: removing the term “separate account” where it could be confusing, standardizing delegated authority language to reference the senior chief investment officer, and clarifying authorized-staff trading controls to align with enterprise governance practices. April Wilcox, director of investment services, described the trading-authority wording as a governance control intended to strengthen operational safeguards across portfolios.

Committee members asked for clarity on how RMS interacts with CalSTRS’ broader diversifying allocation (fixed income, cash and RMS) and on scenarios in which RMS might not perform as intended. RMS staff said the portfolio contains multiple substrategies to address different shock types and that the policy edits are intended to allow continued evolution and addition of new substrategies as appropriate. Staff noted Makita performs quarterly due diligence and reports to the committee on RMS activity.

The committee approved the policy changes and directed staff to implement the revised RMS policy framework and continue reporting on performance and any proposed additions to the RMS portfolio.

Votes at a glance: Motion (move RMS information item to action and adopt revised RMS policy): mover — Trustee Karen Yamamoto; second — Controller Cohen; outcome — approved; roll-call recorded above.

The committee scheduled additional discussion of RMS and related tactical positioning in closed session later in the day, consistent with staff’s statement that some investment-specific details are appropriate for closed sessions.","The CalSTRS Investment Committee voted to adopt updated policy language reframing RMS as a portfolio, broaden substrategy ranges and add the terms “defenders” and “diversifiers.” The committee moved the item from information to action and approved it by roll-call vote.","actionData","errors"]

Article not found

Consultants report to CalSTRS: long-term private markets outperformance persists; real estate allocation down from peak

Teachers, beneficiaries urge CalSTRS to divest from Tesla and other companies during public comment

CalSTRS CIO warns of ‘unprecedented, world-changing’ policy risk; outlines liquidity and diversification steps

CalSTRS investment committee approves revisions to Risk Mitigating Strategies policy