In this episode, CalSTRS Chief Investment Officer Chris Ailman discusses leading the country’s second largest public pension fund through the pandemic, his long-term outlook on investing, and how he has incorporated ESG into his investing strategy.
On his investment outlook: “There’s a huge underlying economic crisis that’s not showing up in the numbers… So, we’re going to have a long hangover from this health crisis, and that’s going to be a challenge for us in this environment. But at the same time, I think we will find some opportunities in risk assets, some of the physical assets like real estate and infrastructure where over a long haul I think we can average seven [percent].”
On how he incorporates diversity into his strategy: “The first step we’re going to take is to define what diversity means from our perspective. The second step then is to go out and measure it and hold our managers accountable, and I think we’re really looking for managers that make progress, that recognize this where we see change, because we’re starting from a standpoint where it’s often been said our industry is like me, pale, male and stale. And we’ve got to get off that line, and we’ve got to diversify our talent, diversify our thought process. Get more people in the room and get them involved.”