CalPERS, CalSTRS try to apply vague Newsom order to investment decisions

California agencies are trying to figure out the implications of a vague executive order issued by Gov. Gavin Newsom in September that orders many policy decisions to be made with the need to “mitigate climate change” kept in mind.

A recent Sacramento Bee story suggested that among the most vexed were the California Public Employees’ Retirement System and the California State Teachers’ Retirement System, the two pension giants with estimated unfunded liabilities of $136 billion and $107 billion, respectively, according to 2018 data.

The Bee reported that while the Newsom administration wasn’t ordering CalPERS and CalSTRS to divest from firms involved in fossil fuel, it was requiring them to make new investment decisions that reflect “the increased risks to the economy and physical environment due to climate change.”

Newsom thinks fossil fuel companies are in trouble

This reflects the assumption of the Newsom administration that there will be a rapid shift away from fossil fuels – a view that many hedge funds, mutual funds and large institutional investors don’t share. Large energy corporations remain popular with their stock pickers despite global warming fears. And contrary to the idea that these companies are in decline, some investors see fracking continuing to increase oil production in the U.S. for years to come. Last week, for example, the Motley Fool investment website strongly recommended buying ExxonMobil in 2020, noting that its annual divided “has increased more than 100 percent over the past 10 years.”

Newsom’s edict is producing heartburn with some members of the CalPERS board. That’s because, as the Bee noted, “pension systems have a financial obligation to earn as much as cash as possible to provide retirement security for millions of government employees.”

Former Garden Grove Unified manager Margaret Brown, a CalSTRS critic who won election to the board in December 2017, wrote on Twitter that “unless the governor is willing to take even more $$$ from over-taxed California citizens, Newsom should step back.” 

Corona police Sgt. Jason Perez upset CalPERS Board President Priva Mathur in the October 2018 election after running a campaign that blasted Mathur and other trustees for not focusing solely on returns in their investment decisions.

But the CalPERS and CalSTRS boards have a history of using investments for decades to make political statements. In September, state Treasurer Fiona Ma – who sits on both boards – strongly endorsed such investment activism.

CalPERS quietly shifting from low-risk ‘passive investing’

That means CalPERS and CalSTRS executives are under heavy pressure to improve returns while making investments that can be defended as socially responsible.

The Naked Capitalism website reported in October that this pressure may have led to CalPERS making a major shift in investing part of its portfolio. Instead of traditional “passive equity investing” in index funds that track the S&P 500 or other large categories of stocks and emphasize diversified portfolios, CalPERS has begun to adopt a more aggressive “factor investing” approach that has a chance of generating bigger returns by focusing on industries with better prospects for short- and medium-term gains, among its many tenets. The approach is also somewhat riskier than using index funds.

Reporter Yves Smith wrote that this was a major shift in investment strategy on a par with “CalPERS’ renouncement of hedge funds” in 2014.

The website, which is run by veterans of the global financial industry, has broken a series of stories about CalPERS in recent years.

In August 2018, it revealed that CalPERS CEO Marcia Frost had misrepresented her academic background and didn’t have a college degree.

This August, it offered evidence that CalPERS was hiding a negative audit of its hiring practices that had been triggered in part by the agency’s failure to vet Frost’s claims.

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  1. edryan221
    edryan221 11 March, 2020, 07:07

    LA Times will not report this information because they are owned by Oligarchs with verifiable connection to CIA. LAPD VIGILANTES NAMED GANG STALKERS. They do “Voice in Head” Electronic Harassment causing victim suicides. Google “Mico-Wave Auditory Effect”. These people do Electronic Harassment using well known in Los Angeles on Problem Homeless and Whistle blowers. They Victimized me in LA 2016-2018. Now, as I run for Mayor LA 2022 I go public with what is known. LAPD and LA Infra-Gard are responsible.

    LA Times will not report this information because they are owned by Oligarchs with verifiable connection to CIA. LAPD VIGILANTES NAMED GANG STALKERS. They do “Voice in Head” Electronic Harassment causing victim suicides. Google “Mico-Wave Auditory Effect”. They c These people do Electronic Harassment using well known oN Los Angeles on Problem Homeless and Whistle blowers. They Victimized me in LA 2016-2018. Now, as I run for Mayor LA 2022 I go public with what is known. LAPD and LA Infra-Gard are responsible.

    NAMES AND ADDRESSES. STOP LAPD/LA INFRAGARD SICK ELECTRONIC HARASSMENT/GANG STALKING. PROSECUTE THOSE RESPONSIBLE. MORE INFORMATION AT TARGETED.COM

    In 2018, 3 different police whistleblowers told us, the Gangs talking operations are run from the Fusion Centers. The details can be found in government reference documents in “The Governors of Gangs talking.”

    Joint Regional Intelligence Center – Los Angeles
    12440 East Imperial Highway Norwalk, CA 90650
    (562) 345-1100
    [email protected]
    Steve Oda, FBI
    Robert Fox, LAPD (now retired)
    Robert Galarneau, LA Sheriff’s Dept

    Alex Vargas, Jr – Deputy Director
    Joel Cohen, Manager of Intelligence
    Mark Tharp, Manager of Operations
    [email protected]

    Senior Managers working with JRIC:
    Alejandro Vargas, Jr and Cynthia Gatiglio have held management positions at the JRIC. Gangstalking operations. It is illegal.
    [email protected]

    Cynthia Gatiglio, 48

    Cynthia A Gatiglio, Cynthia Ortega, Cythia Gatiglio
    13828 Greenbrier Ave, Bellflower, CA 90706
    Related to
    Glen M Pool 98 Andrea M Ortega 70 Andred Ortega Bettyl L Gatiglio 80 Hilda Pool 50 Mamie Gatiglio Mark Gatigilo 51 Glen R Pool 47 Julian Gatiglio J Gatiglio ~84 Michael A Gatiglio 55 Ruby Ortega 44 Michael A Chrisafis ~55 Julian A Gatiglio 84 Javier P Ortega 74

    Cynthia A Gatiglio, Age 48
    3636 N Rose AVE Long Beach, CA 90807
    (562) 492-5984

    Cynthia A Gatiglio, Age 48
    9530 Maplewood ST Bellflower, CA 90706
    (310) 920-1057

    At the Los Angeles Police Dept, these two Assistant Chiefs are involved with Gangstalking Operations and the cover-up.

    Counter-Terrorism and Special Operations Bureau (CTSOB)
    100 West First Street
    Los Angeles, CA 90012

    http://www.lapdonline.org/inside_th…/content_basic_view/6502

    [email protected]
    [email protected]
    [email protected]
    Horace E Frank, 59
    Frank E Horace, Horace Grant
    Corona, CA

    Related to
    Alana G Frank 29 Marcia A Case 55 Xin Yang Zhen 59 Norma R Young 76 Daniel J Young 47 Gayle L Young 78 Mary E Young 77 Faron A Young 52 Alec E Frank Gordon S Young 77 Michelle A Frank 53 Alan Frank 2
    Aram Sahakian, General Manager
    Emergency Management Department
    City of Los Angeles
    (213) 484-4821

    [email protected]
    [email protected]

    200 N. Spring Street,
    Room 1533
    Los Angeles, CA 90012
    (213) 484-4800
    [email protected]

    Robin Limon promoted to Assistant Sheriff, March 2019.
    [email protected]

    Los Angeles County Sheriff’s Dept – Special Operations Division supports the Gangstalking.

    “As Assistant Sheriff, Limon will oversee Countywide Operations, which includes Detective Division, Technology & Support, Special Operations Division, and Countywide Services Division, which encompasses over 200 facilities located across the 4,752 square miles of Los Angeles County.”
    Pearlstein is a Counterterrorism specialist.

    Supervisory Special Agent | Intelligence Division
    [email protected]

    Supervisory Special Agent | Counterterrorism Program Coordinator |
    Joint Terrorism Task Force
    Dates Employed Jan 2016 – Sep 2017
    Employment Duration 1 yr 9 mos
    Greater Los Angeles Area Joint Terrorism Task Forces

    Mail: 404 E. 1st St. #604 • Long Beach, CA 90802
    Office: 11000 Wilshire Blvd. Ste. 1100 • Los Angeles, CA 90024
    Phone: (562) 345-1192

    [email protected]
    [email protected]
    [email protected]

    JRIC states that Infragard plays a important role in their operations. However, Infragard is little more than a privatized spying and stalking organization, in my opinion. This is done to avoid FOIA requests. Their people are recruited, trained, and tasked using the FBI’s “Confidential Human Sources Policy.”

    Roger Rieger – President/CEO
    InfraGard LA

    Last Known Addresses for Roger Rieger
    645 Pacific Ave Long Beach, CA 90802
    12440 E Imperial Highway St Long Beach, CA 90802

    Cherie Kono – Executive Director
    InfraGard LA

    Cherie J Kono, 32
    Related to
    Albert A Cua 49 Dennis A Kono ~31 Dennis A Kono 35 Keith K Kono Domingo M Legarda 61 Amelia A Kono 61

    Cherie Jean Kono
    1342 N Detroit ST #301 Los Angeles, CA 90046
    (323) 672-8323

    Cherie Jean Kono
    5505 Halison ST Torrance, CA 90503
    (310) 542-0347

    Board Members:
    Roger Rieger – President/CEO
    InfraGard LA
    Shawnee Critides – Exec. Vice President
    So. Cal Edison (ret.)
    William Michael – Corporate Treasurer
    JPL NASA
    Phil Siegel – Corporate Secretary
    Northrop Grumman
    Cheryl Santor – Board Member
    Metropolitan Water District of So. Cal. (ret.)

    1 viewAnswer may need improvement

    (Appeal)

    Upvote

    Share

    Add Comment

    View 16 Other Answers to this Question

    About the Author

    Edward Ryan

    In LA, EdRyanMayorLA2022, is Political Activist at Los Angeles2016–present

    JD from California Western School of Law

    In 2018, 3 different police whistleblowers told us, the Gangs talking operations are run from the Fusion Centers. The details can be found in government reference documents in “The Governors of Gangs talking.”

    Joint Regional Intelligence Center – Los Angeles
    12440 East Imperial Highway Norwalk, CA 90650
    (562) 345-1100
    [email protected]
    Steve Oda, FBI
    Robert Fox, LAPD (now retired)
    Robert Galarneau, LA Sheriff’s Dept

    Alex Vargas, Jr – Deputy Director
    Joel Cohen, Manager of Intelligence
    Mark Tharp, Manager of Operations
    [email protected]

    Senior Managers working with JRIC:
    Alejandro Vargas, Jr and Cynthia Gatiglio have held management positions at the JRIC. Gangstalking operations. It is illegal.
    [email protected]

    Cynthia Gatiglio, 48

    Cynthia A Gatiglio, Cynthia Ortega, Cythia Gatiglio
    13828 Greenbrier Ave, Bellflower, CA 90706
    Related to
    Glen M Pool 98 Andrea M Ortega 70 Andred Ortega Bettyl L Gatiglio 80 Hilda Pool 50 Mamie Gatiglio Mark Gatigilo 51 Glen R Pool 47 Julian Gatiglio J Gatiglio ~84 Michael A Gatiglio 55 Ruby Ortega 44 Michael A Chrisafis ~55 Julian A Gatiglio 84 Javier P Ortega 74

    Cynthia A Gatiglio, Age 48
    3636 N Rose AVE Long Beach, CA 90807
    (562) 492-5984

    Cynthia A Gatiglio, Age 48
    9530 Maplewood ST Bellflower, CA 90706
    (310) 920-1057

    At the Los Angeles Police Dept, these two Assistant Chiefs are involved with Gangstalking Operations and the cover-up.

    Counter-Terrorism and Special Operations Bureau (CTSOB)
    100 West First Street
    Los Angeles, CA 90012

    http://www.lapdonline.org/inside_th…/content_basic_view/6502

    [email protected]
    [email protected]
    [email protected]
    Horace E Frank, 59
    Frank E Horace, Horace Grant
    Corona, CA

    Related to
    Alana G Frank 29 Marcia A Case 55 Xin Yang Zhen 59 Norma R Young 76 Daniel J Young 47 Gayle L Young 78 Mary E Young 77 Faron A Young 52 Alec E Frank Gordon S Young 77 Michelle A Frank 53 Alan Frank 2
    Aram Sahakian, General Manager
    Emergency Management Department
    City of Los Angeles
    (213) 484-4821

    [email protected]
    [email protected]

    200 N. Spring Street,
    Room 1533
    Los Angeles, CA 90012
    (213) 484-4800
    [email protected]

    Robin Limon promoted to Assistant Sheriff, March 2019.
    [email protected]

    Los Angeles County Sheriff’s Dept – Special Operations Division supports the Gangstalking.

    “As Assistant Sheriff, Limon will oversee Countywide Operations, which includes Detective Division, Technology & Support, Special Operations Division, and Countywide Services Division, which encompasses over 200 facilities located across the 4,752 square miles of Los Angeles County.”
    Pearlstein is a Counterterrorism specialist.

    Supervisory Special Agent | Intelligence Division
    [email protected]

    Supervisory Special Agent | Counterterrorism Program Coordinator |
    Joint Terrorism Task Force
    Dates Employed Jan 2016 – Sep 2017
    Employment Duration 1 yr 9 mos
    Greater Los Angeles Area Joint Terrorism Task Forces

    Mail: 404 E. 1st St. #604 • Long Beach, CA 90802
    Office: 11000 Wilshire Blvd. Ste. 1100 • Los Angeles, CA 90024
    Phone: (562) 345-1192

    [email protected]
    [email protected]
    [email protected]

    JRIC states that Infragard plays a important role in their operations. However, Infragard is little more than a privatized spying and stalking organization, in my opinion. This is done to avoid FOIA requests. Their people are recruited, trained, and tasked using the FBI’s “Confidential Human Sources Policy.”

    Roger Rieger – President/CEO
    InfraGard LA

    Last Known Addresses for Roger Rieger
    645 Pacific Ave Long Beach, CA 90802
    12440 E Imperial Highway St Long Beach, CA 90802

    Cherie Kono – Executive Director
    InfraGard LA

    Cherie J Kono, 32
    Related to
    Albert A Cua 49 Dennis A Kono ~31 Dennis A Kono 35 Keith K Kono Domingo M Legarda 61 Amelia A Kono 61

    Cherie Jean Kono
    1342 N Detroit ST #301 Los Angeles, CA 90046
    (323) 672-8323

    Cherie Jean Kono
    5505 Halison ST Torrance, CA 90503
    (310) 542-0347

    Board Members:
    Roger Rieger – President/CEO
    InfraGard LA
    Shawnee Critides – Exec. Vice President
    So. Cal Edison (ret.)
    William Michael – Corporate Treasurer
    JPL NASA
    Phil Siegel – Corporate Secretary
    Northrop Grumman
    Cheryl Santor – Board Member
    Metropolitan Water District of So. Cal. (ret.)

    1 viewAnswer may need improvement

    (Appeal)

    Upvote

    Share

    Add Comment

    View 16 Other Answers to this Question

    About the Author

    Edward Ryan

    In LA, EdRyanMayorLA2022, is Political Activist at Los Angeles2016–present

    JD from California Western School of Law

    Reply this comment

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Chris Reed

Chris Reed

Chris Reed is a regular contributor to Cal Watchdog. Reed is an editorial writer for U-T San Diego. Before joining the U-T in July 2005, he was the opinion-page columns editor and wrote the featured weekly Unspin column for The Orange County Register. Reed was on the national board of the Association of Opinion Page Editors from 2003-2005. From 2000 to 2005, Reed made more than 100 appearances as a featured news analyst on Los Angeles-area National Public Radio affiliate KPCC-FM. From 1990 to 1998, Reed was an editor, metro columnist and film critic at the Inland Valley Daily Bulletin in Ontario. Reed has a political science degree from the University of Hawaii (Hilo campus), where he edited the student newspaper, the Vulcan News, his senior year. He is on Twitter: @chrisreed99.

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