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Pension Funds

CalSTRS’ staff seeks to move forward on proposal for collaborative alternatives investing

Staff at the California State Teachers' Retirement System, West Sacramento, is expected to seek direction from the investment committee on a proposed project to create a collaborative model for investing in private equity, real estate and infrastructure, according to a report to the investment committee for its May 9 meeting.

The collaborative model emphasizes an alliance with private market participants and other like-minded investors, the report stated. The term was coined by Ashby Monk, the executive and research director at the Stanford Global Projects Center, and Rajiv Sharma, research director at the Stanford center, the report noted.

Mr. Monk was part of a panel that came before the committee in February that also included Mark Wiseman, a senior vice president at BlackRock (BLK) and chairman of BlackRock Alternative Investors, and Jonathan Hausman, managing director and head of global strategic relationships at the C$189.5 billion ($147.6 billion) Ontario Teachers' Pension Plan, Toronto.

Staff is expected to work with consultants to gain insight and input, and to provide a formal recommendation at a future board meeting.

The investment committee is also expected to consider a plan to engage with retailers and manufacturers of assault-type weapons that are illegal in California. If staff feels a company is not making an adequate effort to engage or is being responsive to the $222.5 billion pension fund, then CalSTRS could vote against the company's entire board of directors. If those efforts are unsuccessful, staff and the investment committee could consider divesting its investment with the company.