CalSTRS approved a $150 million investment in commodities, a fraction of the $2.5 billion commodities investment the board was considering as recently as September, confirmed Ricardo Duran, spokesman for the $138.6 billion West Sacramento-based system.
“The reason for the decision to go with the smaller amount is that this is a new direction for the fund,” Mr. Duran said in an e-mail response to questions. “With that in mind, the members of the investment committee wanted to take a prudent approach to investing in this strategy. They made the decision to go with the smaller amount during deliberations in their Sept. 2 meeting and directed staff to come back in November with a policy and implementation plan that reflected the more modest approach.”
Mr. Duran said the commodities investment will be put into the California State Teachers’ Retirement System’s innovations and risk portfolio “that is designed to test out the strategy, where it will be reviewed 18 months from now.”