CalSTRS Debuts Results of Diversity Survey; Co-Sponsored with Leading Edge Investment Advisors and Anira Advisory Group.

SACRAMENTO, Calif. -- CalSTRS has revealed the first round of survey results from its multiyear study of attitudes about diversity in the investment management industry. The study was developed as part of CalSTRS' comprehensive diversity efforts launched in early 2005 to improve understanding of how women and minorities are perceived in the investment management industry. The survey was co-sponsored with Leading Edge Investment Advisors, LLC and Anira Advisory Group, LLC, both of which are investment management companies specializing in manager-of-managers portfolios.

Designed to collect baseline information, the anonymous Internet survey consisted of 31 multiple choice questions and solicited opinions about diversity issues held by investment management professionals. Demographics of the 200 survey respondents reflected a varied pool with regard to gender, age, ethnicity, education, size and type of organization and career experience. The results provide a snapshot of current peer perceptions and insight into the experiences of women and minority fund managers.

Key conclusions revealed that:

--Biases against women and minorities still exist.

--A portion of respondents report awareness of biases against women and minorities.

--There are structural and cultural issues preventing a tighter embrace of diversity.

--More study is required to identify trends regarding diversity, and whether or how efforts to expand diversity are working.

"This survey is a good step in shining a light on attitudes about diversity in the investment management industry," noted Christopher J. Ailman, chief investment officer of CalSTRS. "The industry is constantly seeking creative avenues to increase investment returns. We believe that utilizing a diverse pool of fund managers will enable CalSTRS to capitalize on previously untapped investment opportunities."

The next survey in the five-part series is planned for July 2006. Subsequent survey results will be measured in a year-over-year comparison. Full survey results can be viewed at www.calstrs.com/Investments.

This survey was cited in CalSTRS' nomination for the Savviest Plan of the Year award by the editors of Money Management Letter. The fund was selected for its groundbreaking initiative to create a database of emerging asset managers and this comprehensive study on attitudes about diversity in the industry.

With a $140 billion investment portfolio, the California State Teachers' Retirement System is the third-largest public pension fund in the United States. It provides retirement, disability and survivor benefits to California's public school teachers from kindergarten through community college, serving more than 775,000 members and their families.