New CalSTRS CIO Scott Chan ready to face 'paradigm shift'; Challenges across many fronts require a unified effort, former deputy says

Speaking recently at the Milken Institute Global Conference, Chan outlined a "paradigm shift" in the economy, underscoring the importance for CalSTRS to be a nimble organization that resists the temptation to make big bets in hopes of earning outsized returns. Since he joined the California State Teachers' Retirement System, West Sacramento, six years ago as its first deputy CIO, Chan has been responsible for its collaborative model, which is designed to lower costs and increase CalSTRS' control over its investments, saving the pension fund nearly $2 billion so far. By comparison, CalPERS in April chose an external candidate, Stephen Gilmore, the chief investment officer of sovereign wealth fund New Zealand Superannuation Fund, as its new chief investment officer. In that position, he has also been managing eight critical functions, including investment strategy and risk, global equities, fixed income, real estate, private equity, risk mitigating strategies, inflation sensitive, and sustainable investment and stewardship strategies.