Scott Chan

So my staff needs to be the forefront of the minds of our partners. We need to sort of mirror them in our expertise too. And I think we've been able to show that or demonstrate that. Number two, we need to be nimble and dynamic in the marketplace as well. So if a decision needs to be made, And this doesn't happen often, but if it needs to be made same day, we have to match that capability.

So my staff needs to be the forefront of the minds of our partners. We need to sort of mirror them in our expertise too. And I think we've been able to show that or demonstrate that. Number two, we need to be nimble and dynamic in the marketplace as well. So if a decision needs to be made, And this doesn't happen often, but if it needs to be made same day, we have to match that capability.

And we do that by delegating a lot of authority to the divisions and giving them the opportunity to have their own investment committees. So we're nimble and dynamic. And the third element is for us to be flexible.

And we do that by delegating a lot of authority to the divisions and giving them the opportunity to have their own investment committees. So we're nimble and dynamic. And the third element is for us to be flexible.

And we do that by delegating a lot of authority to the divisions and giving them the opportunity to have their own investment committees. So we're nimble and dynamic. And the third element is for us to be flexible.

So we don't have this one size fits all model, but we can structure anything depending on what makes sense for the particular transaction or what makes sense for the partner and us together. So we could be flexible. In the limited partnership, we could have a separately managed account that's more bespoke.

So we don't have this one size fits all model, but we can structure anything depending on what makes sense for the particular transaction or what makes sense for the partner and us together. So we could be flexible. In the limited partnership, we could have a separately managed account that's more bespoke.

So we don't have this one size fits all model, but we can structure anything depending on what makes sense for the particular transaction or what makes sense for the partner and us together. So we could be flexible. In the limited partnership, we could have a separately managed account that's more bespoke.

We can co-invest, we can do a joint venture, we can share revenues, all the way to owning a minority or majority interest in the asset management. So those things, I think, are at the core of how we execute.

We can co-invest, we can do a joint venture, we can share revenues, all the way to owning a minority or majority interest in the asset management. So those things, I think, are at the core of how we execute.

We can co-invest, we can do a joint venture, we can share revenues, all the way to owning a minority or majority interest in the asset management. So those things, I think, are at the core of how we execute.

In our public markets, because we have so much capital, we end up being the market. And it's very difficult to deploy the amount of capital we have in a way that we can generate alpha on a consistent basis. And so if you looked at our global equity portfolio as an example, I would say 80% of that is passively managed and maybe 20% of that is actively managed.

In our public markets, because we have so much capital, we end up being the market. And it's very difficult to deploy the amount of capital we have in a way that we can generate alpha on a consistent basis. And so if you looked at our global equity portfolio as an example, I would say 80% of that is passively managed and maybe 20% of that is actively managed.

In our public markets, because we have so much capital, we end up being the market. And it's very difficult to deploy the amount of capital we have in a way that we can generate alpha on a consistent basis. And so if you looked at our global equity portfolio as an example, I would say 80% of that is passively managed and maybe 20% of that is actively managed.

And then if you looked at the fixed income side, again, we're sort of enhanced active. So you're right in the sense that we've taken what we think is appropriate risks, but those risks tend to be narrow. And we've shifted a lot more of our risk budget, so to speak, as an organization into the private markets where we think the probability of generating alpha or greater value add is a lot higher.

And then if you looked at the fixed income side, again, we're sort of enhanced active. So you're right in the sense that we've taken what we think is appropriate risks, but those risks tend to be narrow. And we've shifted a lot more of our risk budget, so to speak, as an organization into the private markets where we think the probability of generating alpha or greater value add is a lot higher.

And then if you looked at the fixed income side, again, we're sort of enhanced active. So you're right in the sense that we've taken what we think is appropriate risks, but those risks tend to be narrow. And we've shifted a lot more of our risk budget, so to speak, as an organization into the private markets where we think the probability of generating alpha or greater value add is a lot higher.

And over the years, if you looked at the trends of the last couple of decades, we've shifted roughly 44% of our asset allocation into the private markets and the alternative assets. That's not only diversified the portfolio, but what you're alluding to, an alpha generator for CalSTRS.

And over the years, if you looked at the trends of the last couple of decades, we've shifted roughly 44% of our asset allocation into the private markets and the alternative assets. That's not only diversified the portfolio, but what you're alluding to, an alpha generator for CalSTRS.

And over the years, if you looked at the trends of the last couple of decades, we've shifted roughly 44% of our asset allocation into the private markets and the alternative assets. That's not only diversified the portfolio, but what you're alluding to, an alpha generator for CalSTRS.