Following a routine liability management study, the $242 billion California State Teachers' Retirement System (CalSTRS) has officially increased its allocation to inflation-sensitive assets such as infrastructure, agriculture and timber, according to a board meeting document.
CalSTRS approved a 2 percent increase to that asset class at its November board meeting, bumping up the allocation from 4 percent to 6 percent.
The board also increased the real estate asset allocation from 13 percent to 15 percent and reduced the allocation to public equity from 47 percent to 42 percent.
The new allocations will be effective for the next four years, beginning in January 2020.
Every four years, CalSTRS’ investment committee conducts an asset liability management study to help it adopt a new asset allocation.
