CalSTRS Underperformed Last Fiscal Year
The California State Teachers’ Retirement System (CalSTRS) underperformed in the last fiscal year, according to its chief investment officer, Christopher Ailman. The pension fund, which is the second-largest in the United States, reported a return of 6.3% for the year ending June 30, 2020.
CalSTRS Performance
CalSTRS is the largest public pension fund in the United States, with assets of $232 billion. It provides retirement benefits to more than 930,000 current and former California public school teachers. The fund’s performance in the last fiscal year was below its benchmark of 7.5%.
Ailman attributed the underperformance to the fund’s investments in private equity and real estate, which he said were “not as strong as we had hoped.” He also noted that the fund’s investments in public equities were “not as strong as we had expected.”
CalSTRS Investment Strategy
CalSTRS has a long-term investment strategy that focuses on diversification and risk management. The fund invests in a variety of asset classes, including public equities, fixed income, private equity, real estate, and alternative investments.
The fund’s investment strategy is designed to generate returns that exceed its benchmark over the long term. Ailman said that the fund’s long-term performance has been “very good” and that it has outperformed its benchmark over the past 10 years.
CalSTRS Risk Management
CalSTRS has a risk management program in place to ensure that its investments are managed in a prudent manner. The fund has a risk management committee that meets regularly to review the fund’s investments and to ensure that they are in line with its investment objectives.
The fund also has a risk management policy that outlines the fund’s risk management practices and procedures. The policy includes guidelines for diversification, asset allocation, and risk management.
CalSTRS Outlook
Despite the underperformance in the last fiscal year, Ailman is optimistic about the fund’s future. He said that the fund is well-positioned to generate strong returns over the long term.
He noted that the fund has a diversified portfolio and is well-positioned to benefit from the current market environment. He also said that the fund is well-positioned to benefit from the long-term growth of the global economy.
Conclusion
The California State Teachers’ Retirement System (CalSTRS) underperformed in the last fiscal year, according to its chief investment officer, Christopher Ailman. The fund’s performance was below its benchmark of 7.5%. Ailman attributed the underperformance to the fund’s investments in private equity and real estate. Despite the underperformance, Ailman is optimistic about the fund’s future. He said that the fund is well-positioned to generate strong returns over the long term due to its diversified portfolio and its ability to benefit from the current market environment and the long-term growth of the global economy.