US - CalSTRS, the giant $105bn California State Teachers' Retirement System, has changed its asset allocation mix, increasing its exposure to alternative investments and real estate.
The changes, made by CalSTRS' investment committee, are the result of the fund's bi-annual asset allocation review. Alternatives will now comprise 8% of CalSTRS total assets, an increase of 3%. Additionally, the committee decided to raise its real estate allocation by 2%, bringing it up to 7%.
To accommodate the increases in the real estate and alternatives asset allocations, the fund is cutting its exposure to non-US equities. As of June 30, the fund’s actual asset allocation was 4% alternatives, 22% international equities, US equities 39%, real estate 5%, fixed income 28% and cash 2%.
Pension Consulting Alliance assisted.
By Geoffrey Ho
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