The $367.7B California State Teachers’ Retirement System (CalSTRS) is continuing to build out a roadmap to a total portfolio approach, unifying public and private markets under one framework to strengthen liquidity management, mitigate rising market risk, and position the portfolio for long-term growth.
As part of the effort, the pension fund has formalized a streamlined senior management structure aimed at strengthening leadership capacity as it grows more global and increases its direct investment capacity. CalSTRS’ chief investment officer Scott Chan outlined the structure during a September board meeting, describing it as a forward-looking approach to governance and execution.
Earlier this year, Chan announced internal promotions that saw four senior investment leaders appointed to oversee its major portfolios: Geraldine Jimenez was tapped to lead public markets, overseeing global equities, fixed income, and risk-mitigating strategies; Kirsty Jenkinson was named head of private markets, overseeing real estate, private equity, and inflation-sensitive assets; April Wilcox is leading operations, responsible for compliance, performance, data solutions, and technology buildout; and June Kim is leading Total Fund Management, covering asset allocation, liquidity, leverage, and total fund risk.
Chan said the changes provide the investment team with a more holistic view of the portfolio and better support for new allocations that fall outside traditional silos, such as private credit.
He also pointed to the growing range of risks CalSTRS must manage. Emerging demographic pressures, such as a declining number of teachers, immigration shifts, and reliance on state finances, are among the challenges the pension is facing, said Chan, adding that organizational risks like staff retention and succession planning, as well as reputational and headline risks, also weigh heavily on the fund.
The framework is organized around several themes, with a focus on diversification and liquidity management. “In a more volatile and dynamic environment, with greater allocations to private markets, we’ve been enhancing our liquidity capabilities, so in light of a potential recession or downturn, we have the amount of liquidity to rebalance a portfolio, to mitigate risks, as well as to invest in opportunities,” said Chan.
The new structure will also leverage industry network intelligence, protecting information integrity, while ensuring alignment across staff, board, and consultants.
“Creating this team allows us to seed new opportunities, manage risk holistically, and ensure our scale advantages are fully realized,” he said. “It’s about ensuring CalSTRS is well-positioned not just for today, but for the next decade and beyond.”
