Longtime investment chief at California teachers’ pension fund will retire this summer

Sacramento Bee (CA)

Christopher Ailman, the top investment executive at California’s teacher pension fund, will retire at the end of June after more than 20 years of service.

The chief investment officer for the California State Teachers’ Retirement System announced his departure plans during Thursday’s investment committee meeting. His final day will be June 30, and the board will conduct a global search for his successor. Ailman has agreed to advise the incoming CIO through the end of 2024.

“It has been an honor, the privilege of my career,” Ailman said in his remarks to the board. “I realized that I have been the CIO at STRS here for almost a third of my life, which is just amazing.”

As Ailman prepared to speak, three numbers flashed up on the big board: 40, 258 and 377.

Before he spoke about his own retirement, Ailman took a few minutes to acknowledge and celebrate Steven Tong, CalSTRS’ director of innovation and risk, who will surpass 40 years of service at CalSTRS this year.

The following two numbers respectively represent the number of CIO reports Ailman has given at CalSTRS, and the total number of CIO reports he has delivered throughout his career, respectively.

“When I look at those numbers, I think I’ve got about three more CIO reports — including this one — left in me,” he said.

Ailman joined CalSTRS as CIO in October 2000. At the time, the investment staff managed a portfolio of only about $100 billion. He told his team, “My goal is to make us a world-class money manager.”

And he did. Ailman guided the fund through several tumultuous periods, such as the internet bubble burst of the early 2000s, the post-9/11 economic fallout and the 2008 global financial crisis. As of Nov. 30 of last year, the fund had grown to about $318 billion.

“I am incredibly proud of having been here,” said Ailman, whose sister and daughter have both served as educators. “California teachers have always been really important to me.”

The room gave Ailman a standing ovation and prolonged applause after he finished his announcement.

“This is not the end of the game, folks,” said board member Bill Prezant. “This is the second half.”

Prezant encouraged the CalSTRS team to work collaboratively and push to reach the fund’s 7% investment return goal this year.

“We’ve got to get 7% for the coach in his last game,” Prezant said. “Let’s work hard to make it happen. It will be the greatest gift, to not only Chris, but obviously to our teachers.”

Ailman’s tenure as chief investment officer is one of the longest in the world, according to CalSTRS.

In the last five years, Ailman has focused on helping the board implement a sustainable portfolio. The fund has committed to reaching a net-zero greenhouse gas emissions portfolio by 2050 or sooner.

Ailman also committed CalSTRS to advancing diversity in the investment industry. He established the summer student investment internship program in 2016, with priority given to students with backgrounds that are underrepresented on Wall Street. In order to prioritize retention, Aliman also started an internal investment mentorship program in 2022 that partnered junior staff with more experienced investment professionals.

Prior to CalSTRS, Ailman spent more than a decade as CIO of the Sacramento County Employees’ Retirement System followed by four years at the Washington State Investment Board, according to his LinkedIn page.

“His legacy and biggest contribution is his commitment to diversity and developing highly skilled professionals who have performed at a high level for more than two decades,” said CalSTRS Board Chair Harry Keiley in a statement before Thursday’s meeting. “I am eternally grateful to Christopher for all that he has given to CalSTRS, and I am confident the Investments team will continue to help us achieve our mission to secure the financial future of California’s educators.”

Keiley took a moment after Ailman’s CIO report to thank him for all the time he dedicated to meeting with teachers and other stakeholders, an unusual practice for an executive at one of the country’s and world’s largest pension funds.

“You’ve taken time, our most precious resource, to meet with stakeholders. And I think the public needs to recognize that,” Keiley said on Thursday. “We need to recognize that, and we need to thank you, on the record, for that.”

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