CalSTRS’ investment committee on Friday approved revisions to an in-state investment program that would allow the pension fund more flexibility in connection with the goal of investing 2% of the portfolio in California’s underserved markets.
The new policy allows the pension fund’s investment staff and board to consider their fiduciary duty before making investments to reach the 2% policy goal.
Christopher Ailman, chief investment officer, said in an interview that the in-state underserved markets portfolio consists of investments in several private equity funds, whose returns have been weaker than the rest of the private equity portfolio.
Performance numbers were not immediately available.
“We remain committed to investing in California,” Mr. Ailman told the investment committee. He said the policy changes will give the staff more flexibility in reviewing investments in underserved markets.
Statistics from the $183.8 billion California State Teachers’ Retirement System, West Sacramento, show that the California investment portion of the pension fund’s portfolio as of June 30, 2013, amounted to $23.9 billion, 14.5% of the total retirement system portfolio at the time. Exposure to California underserved markets represented 2.7% of the total portfolio.
