CalSTRS staff proposed shifting nearly $3 billion in domestic equities to active from passive management. Staff and consultant Pension Consulting Alliance recommended the $90 billion California State Teachers’ Retirement System, Sacramento, shift its target split between passive and active strategies to 70%-30%, with bands of five percentage points. Currently, the target mix is 80% passive, and 20% active.
Currently, Barclays Global Investors and CalSTRS staff manage $13.4 billion each in Russell 1000 funds, while BGI and State Street Global Advisors run $1 billion each in Russell 2000 funds. CalSTRS runs another $1.2 billion in an internal, passively managed transition account. There was no information on which passive funds would be reduced to fund the shift.
CalSTRS investment committee will consider the proposal on March 5. The system currently has 16 external active domestic equity managers running nearly $8 billion.
