CalSTRS staff recommended committing up to $25 million to Angelo, Gordon Capital Recovery Partners III, a distressed debt fund.
Separately, the California State Teachers’ Retirement System, Sacramento, last year chalked up record earnings of $92.8 million from its securities-lending program, 74% more than the $53.3 million the fund achieved in 2000, when the program was restructured. Those earnings represent a gain of 9.2 basis points, far above the 13-year-old program’s average gain of 5.4 basis points. About 75% of the system’s $101 billion in assets is considered "lendable.” CalSTRS has established a credit committee as a first step in maintaining the quality of the income stream.
Elsewhere, CalSTRS staff is asking its investment committee whether to develop a "responsible contractor” policy for its $5.2 billion real estate equity program, requiring that "fair” wages and benefits — including health and pension benefits — are paid to workers hired by contractors and subcontractors. The California Public Employees’ Retirement System, the New York Common Retirement Fund, the State Teachers Retirement System of Ohio and the Colorado Public Employees’ Retirement Association have adopted similar policies.
