CalSTRS' investment committee is scheduled to vote on an asset allocation plan for the next three years at its meeting Sept. 10.
The investment staff of the $170 billion California State Teachers' Retirement System, West Sacramento, has discussed at prior meetings decreasing the fixed-income allocation while increasing inflation-sensitive and real-return investments.
“It is not expected to be a radical shift,” said Ricardo Duran, a spokesman for the pension fund, of the possible asset allocation changes. “We are looking at tweaking the portfolio for greater diversification and to protect against the possibility of inflation,” Mr. Duran said in an interview.
Twenty percent of CalSTRS' portfolio is allocated to fixed income; 4.05% is in the inflation-sensitive portfolio, which includes Treasuries and Treasury inflation-protected securities; and 0.6% is allocated to real-return assets.