CalSTRS considers new alternative asset allocations

The California State Teachers’ Retirement System (CalSTRS) is considering alternatives for a new four-year asset allocation cycle beginning in January 2020, a spokesperson for the $241.3 billion pension fund said in an email.

No concrete decisions have been made at this time.

The next step is a discussion of alternative allocations, followed by a formal adoption of long-term asset allocations, which includes real estate. Currently, CalSTRS has a 13 percent target allocation to real estate, and an actual allocation of 13.37 percent, valued at $32.3 billion.

Every four years, CalSTRS’ investment committee conducts an asset liability management study to help it adopt a new asset allocation. The last study was conducted in 2015 (read more about the study here).

In July, the