December 11, 2009 |
Hurt by big investment losses, California's two biggest state-run pension funds lost top long-term credit ratings from Moody's Investors Service on the insurance they sell to municipal governments to make it easier for them to sell bonds. Moody's blamed the downgrade on steep losses suffered by the funds, which could affect their future ability to meet obligations to retirees. "Today's rating action reflects our expectation that the cumulative back-to-back market value declines in the investment portfolios of both CalPERS and CalSTRS for the fiscal years ended June 2008 and 2009 will exacerbate long-term projected actuarial funding shortfalls, recent market gains notwithstanding," said Martin Duffy, Moody's vice president and senior credit officer.
March 16, 2010 |
Four years ago, as the California State Teachers' Retirement System still was recovering from the dot-com bust at the turn of the decade, its leaders learned some troubling news. The pension fund was $20 billion short on money needed to pay retirees over the next 30 years. But rather than hike contributions from teachers and school districts, CalSTRS officials decided, in the words of Chief Executive Jack Ehnes, to "roll the dice" and bet that a flourishing bull market would make their woes disappear.
May 13, 1997 |
A Maxxam Inc. shareholder proposal to have the company swap its Headwaters land in exchange for government claims from a failed savings and loan was endorsed by a large pension-fund stockholder. The endorsement came from the California State Teachers' Retirement System, which is the Houston-based timber company's 10th-largest institutional shareholder with 71,400 shares. Its recommendation was reported by the Rose Foundation, an Oakland-based environmental group.
August 3, 2010 |
The state's second-largest public pension fund and a private equity investment partner will try to unseat four directors of Occidental Petroleum Corp. over concerns about the Los Angeles oil company's high executive pay and lack of a management succession plan. The California State Teachers' Retirement System and activist investor group Relational Investors of San Diego told Occidental in a letter that they would seek shareholder votes for their slate of candidates at the oil company's annual meeting next May. The two investors control about 1% of Occidental's shares.
January 21, 2011 |
Investment returns at the nation's two largest public pension systems are back on track after suffering steep losses during the Great Recession. The California Public Employees' Retirement System reported Thursday that its investments grew 12.5% in the calendar year ended Dec. 31. That's in line with a 12.1% gain posted for calendar year 2009. The smaller California State Teachers' Retirement System ended the year with a 12.7% return. Both funds' total performance bested their selected market benchmarks.
September 5, 2013 |
Los Angeles commercial landlord Thomas Properties Group Inc., which revived downtown's massive City National Plaza, is fading from the local landscape. The company has agreed to be sold to Parkway Properties Group Inc., a real estate investment trust based in Orlando, Fla., for $294 million in stock. The deal, which the two companies value at about $1.2 billion after including the value of debt and other costs, will give Parkway two properties in Houston and five in Austin, Texas.