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October 9, 2006
CalSTRS Plans 3% Increase in Alternatives Allocation
As approved at the Teachers' Retirement Board in September, the California State Teachers' Retirement System will increase allocations to alternative investments by three percentage points, and the real estate portfolio will increase by five percentage points. These changes, accounting for nearly $11.5 billion of CalSTRS's $144 billion portfolio, include shifts of 6% away from fixed-income and 1% each from U.S. equity and cash. The board initially voted to adopt new asset allocations in early September Previous HedgeWorld Story, but projected allocations were not known at that time.
In conjunction with the long-term targets, CalSTRS today [Oct. 4] began its search for investment management firms to provide transition management services as it embarks on these long-term changes to its portfolio. According to a news release, CalSTRS is seeking a pool of investment firms to handle managing, acquisition and disposal of assets, as well as portfolio rebalancing as determined by CalSTRS. The final filing date for proposals is Nov. 14, and selections are expected sometime in the spring of 2007. A request for proposal can be accessed at www.CalSTRS.com/rfp.
"We are at the inception of an unprecedented change in our portfolio," CalSTRS Chief Investment Officer Christopher J. Ailman said in a statement. "These managers will be instrumental in our long-term asset allocations strategy to shift assets from fixed-income to more aggressive blended investments that fall somewhere between our private equity and real estate asset classes."
CalSTRS is the second-largest public pension fund in the United States, with a $146 billion investment portfolio.
-HedgeWorld.com-
Posted by su at October 9, 2006 11:13 AM