Investors - JULY 22, 2020

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CalSTRS moves on long-term allocation plan

by Kali Persall

The California State Teachers’ Retirement System (CalSTRS) has bumped up its target allocation to the real estate asset class from 13 percent to 14 percent as part of a shift to the new long-term asset allocation targets approved in January.

The transition was planned to occur over a series of steps. The system is planning to readjust its timeline for implementation, given volatility in the markets caused by the coronavirus pandemic. CalSTRS said it is adjusting the current step 1 to account for the existing capital market environment and operational realities — specifically, bumping up real estate’s allocation to 14 percent in step 1, rather than step 2.

According to CalSTRS, this is predominantly due to private real estate’s allocation increasing as a proportion of the overall portfolio due to stock market volatility, which has disproportionately affected other asset classes, causing their weights to move lower due to market movements.

Under the new lo

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