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Alternative Market Briefing

CalSTRS designs 'criteria matrix’ in making internal vs. external management decision across its portfolio

Thursday, April 07, 2011

amb
Christopher J. Ailman
From Komfie Manalo, Opalesque Asia:

The California State Teachers' Retirement System, (CalSTRS), the second -largest U.S. public pension fund, which manages more than $146bn of assets for around 850,000 members, has designed an evaluation "criteria matrix" to guide the fund in making internal vs. external decisions in managing CalSTRS’ portfolio.

In a paper authored by Paul V. Shantic, Portfolio Manager, Fixed Income and David C. Murphy, CFA, Investment Officer III, Global Equity, and approved by CalSTERS’ Chief Investment Officer Christopher J. Ailman, the pension fund said the criteria should give the board a starting point and guideposts in assisting the Investment Committee and Staff to adopt a suitable roadmap in managing CalSTRS’ assets.

The criteria matrix that the authors of the study designed should not be the "conclusive word" in decision-making with regards to investments, but rather "used as an evaluation tool to assist with this build or buy decision across all asset classes,"

There are five determining factors under the criteria matrix. They are:

Cost Effectiveness/Control - After ......................

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