The California State Teachers’ Retirement System (CalSTRS) is considering adopting new risk-mitigating strategies — investing a portion of its holdings in more stable funds not subject to the vagaries of a volatile stock market. The plan could shift up to $20 billion of CalSTRS’ $191 billion into different investments, according to Marketwatch.
According to Dow Jones Business News, approximately 55% of CalSTRS’ portfolio is invested in stocks. The move could put up to 12% of CalSTRS portfolio into hedge funds, U.S. Treasury bonds and other kinds of investments.
CalSTRS investment officers discussed the matter on Sept. 2; they reportedly will not make a final decision on the proposal until November.
The proposal’s importance is heightened by the fact that CalSTRS is the second-largest state and local pension system in the United States — second only to the California Public Employees Retirement plan. And as California goes, so may others. Pension Pulse reports that the Hawaii Employees’ Retirement System is considering shifting 10%-20% of its assets from stocks and bonds to U.S. Treasuries and liquid alternative funds. And according to Wilshire Consulting, 72% of state pension plans’ collective holdings are invested in stocks and bonds.
According to Dow Jones Business News, approximately 55% of CalSTRS’ portfolio is invested in stocks. The move could put up to 12% of CalSTRS portfolio into hedge funds, U.S. Treasury bonds and other kinds of investments.
CalSTRS investment officers discussed the matter on Sept. 2; they reportedly will not make a final decision on the proposal until November.
The proposal’s importance is heightened by the fact that CalSTRS is the second-largest state and local pension system in the United States — second only to the California Public Employees Retirement plan. And as California goes, so may others. Pension Pulse reports that the Hawaii Employees’ Retirement System is considering shifting 10%-20% of its assets from stocks and bonds to U.S. Treasuries and liquid alternative funds. And according to Wilshire Consulting, 72% of state pension plans’ collective holdings are invested in stocks and bonds.
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