Chief Investment Officer Scott Chan told the board's Investment Committee that the CalSTRS portfolio has weathered recent financial market volatility and remains positioned to take advantage of opportunities that might arise out of likely continued market turbulence.

Chan stressed the expertise of the CalSTRS investment team and the strength of relationships with investment partners and consultants as stabilizing factors.

For years, CalSTRS has positioned its portfolio to allow for the flexibility to respond to changing market conditions. The strategic asset allocation serves as the foundation, and staff dynamically positions the portfolio to manage and mitigate risks within the allocation ranges approved by the board.

Chan noted that diversification and disciplined rebalancing help manage risk to the portfolio, and especially during periods of economic turbulence. Diversification, he stressed, occurs across assets, sectors, companies, geographies and risk factors and is the key to achieving CalSTRS’ objective of providing retirement security for California's public educators.

Chan pointed out that in past downturns, the CalSTRS portfolio outperformed markets as a whole.

He also noted that such downturns have created investment opportunities, and CalSTRS is well-positioned to take advantage again.