What is the future strategy for a $340 billion pension aiming to enhance alpha, cut costs, and manage risks? Scott Chan, the new CIO of CalSTRS, joins Michael Oliver Weinberg on the latest episode of the Improving Alpha podcast. Discover his insights on private credit, public markets, fixed income, the contentious issue of ESG, and much more. Tune in now.
Michael Oliver Weinberg, co-founder, Improving Alpha Podcast Series
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Last year, we were honored to have Chris Ailman as a guest on the Improving Alpha podcast. Fast forward 12 months, and lightning has struck twice for the Improving Alpha team, as we welcome Scott Chan, the current CIO of CalSTRS, to the guest chair.
As the second-largest pension fund in the United States and the premier teacher’s retirement fund globally, CalSTRS manages over $340 billion in assets. Handling a portfolio of this magnitude requires a sophisticated asset allocation strategy that seamlessly integrates cost-saving initiatives, maximizes returns, and enhances risk management on a grand scale. To date, Scott's innovative strategies have resulted in an impressive $1.6 billion in cost savings.
Tune in to the newest episode of the Improving Alpha podcast and discover the insights Scott reveals on:
- how he approaches the ‘reverse pyramid’ structure of his professional career, what he’s inherited from Chris’s tenure at CalSTRS, and the strategic allocation priorities he’s set for the future.
- navigating the trending opinions on private credit and fixed income, and how it impacts the team's total portfolio approach.
- the CalSTRS collaboration model, and how the model is assisting the team to do more sophisticated transactions to boost alpha, including co-investments and joint ventures.
- ESG and his 3-pronged approach to net zero.
- his perspective on investment technology and its power to amplify CalSTRS' vast reservoirs of data and insights, guiding strategic allocation choices.
- the current state of interest rates and inflation and whether this period is our new normal or should we expect a ‘reset’ to occur soon.
- investing red flags and the concept of diversity of thought and risk management.
- and more.
Scott Chan has been the chief investment officer of CalSTRS since July 2024. Joining CalSTRS in August 2018 as deputy chief investment officer, he leads an investment staff of more than 200 and oversees a portfolio valued at $351.5 billion as of September 30, 2024.
Chan has extensive experience as a financial executive overseeing a wide range of investment strategies, at large-scale plans, across all assets and geographies. Prior to joining CalSTRS, Chan was senior managing director of the University of California Regents (UC) where he oversaw the $55 billion global equities portfolio across the university’s pension fund, endowment and working capital pools. While at the UC, he sat on the investment committees of the Los Alamos and Livermore National Laboratories defined benefit and defined contribution pension plans. Chan also served as chief investment officer for the Sacramento County Employees’ Retirement System and was a partner and portfolio manager for several hedge fund partnerships, where he gained direct investing expertise.
Chan is a board member of the Toigo Foundation, co-chair and board member of the Institutional Investors Roundtable and serves on the Milken Institute’s Executive Counsel for Diversity, Equity and Inclusion in Asset Management. He’s also on the advisory boards of the Alternative Investment Management Association, Chartered Alternative Investment Analyst Association, The Investment Diversity Exchange, the Alternative Investors Forum, Institutional Investor’s Public Funds Roundtable and the Kroner Center for Financial Research.
Chan has a master’s in business administration from Duke University’s Fuqua School of Business and a bachelor’s degree in economics from the University of California, Los Angeles. He is a CFA charter holder.
About Our Host: Michael Oliver Weinberg, CFA
For three decades Michael has invested directly at the security level and indirectly as an asset allocator in traditional and alternative asset classes. Most recently he was a Managing Director, Head of Alternative Alpha, on the Investment Committee, and a board member at APG, a Dutch pension provider. Previously he was the Chief Investment Officer at MOV37 and Protege Partners. Michael is also an Adjunct Professor of Economics and Finance at Columbia Business School, where he teaches Institutional Investing, an advanced MBA course that he created.
Michael is a published author, having written for The New York Times, international investment books, and other publications. Michael has been interviewed by the Wall Street Journal, Financial Times, CNBC, Bloomberg and Reuters. He is a frequent panelist, moderator and lecturer for investment banks, institutional and family office organizations, and business schools.
The information covered and posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of Vidrio Financial, and/or our host, Michael Oliver Weinberg. The Content has been made available for informational and educational purposes only. The Content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.
