CalSTRS on Thursday adopted a new asset allocation that reduced public equity by 4 percentage points to 38% while increasing its private capital allocations, mostly boosting private credit.
Specifically, West Sacramento-based $306 billion California State Teachers' Retirement System's investment committee increased fixed income by 2 percentage points to 14%, to fund its private credit direct lending strategy, Geraldine Jimenez, a CalSTRS portfolio manager and a senior investment director told the committee on Thursday. The new asset allocation also increases its private equity and inflation sensitive allocations by 1 percentage point each to 14% and 7%, respectively. The increases in private equity and inflation sensitive allocations are to expand private investments in the transition to a low carbon economy, according to a staff report to the board.
The remaining allocations remain the same: real estate stays at 15%, risk mitigating strategies stays pat at 10% and cash remains at 2%.