ARTICLE
15 September 2015

CalSTRS Considers Moving More Than $20B Into Liquid Alts, Other Alternatives To Protect Against Downturn

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Herbert Smith Freehills Kramer LLP

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CalSTRS is considering a significant shift away from some stocks and bonds in one of the most aggressive moves by a major pension fund to safeguard against another downturn.
United States Finance and Banking

CalSTRS is considering a significant shift away from some stocks and bonds in one of the most aggressive moves by a major pension fund to safeguard against another downturn. The fund is reportedly considering moving up to 12% of its portfolio, or more than $20 billion, into U.S. Treasurys, hedge funds, liquid-alternative funds and other complex investments that it hopes will perform well if markets tumble. Its holdings of U.S. stocks and other bonds would likely decline to make room for the new investments. The fund will also increase commitments to infrastructure projects, while foreign stock holdings could go up or fall, depending on the board's decision. A final decision won't be made until November.

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