Patrick Mitchell, CIO of the $88 billion California State Teachers' Retirement System, at a regular meeting today announced he would not ask for an increase in the fund's equity asset allocation if the U.S. domestic market drops 25%.
Mr. Mitchell's comment was in response to a board member's question about whether the system's global asset allocation should be changed.
Changing the fund's asset allocation in response to a drop in the U.S. equity market would be ``market timing,'' said Mr. Mitchell.
He would, however, rebalance the pension fund's asset allocation, which would most likely mean buying cheaper U.S. equities. Sacramento-based CalSTRS currently holds 40.3% of its assets in U.S. equities.