Global macro strategies take centre stage within innovation portfolio to reduce risk
By Susan Barreto
Earlier this year, the governing board of the California State Teachers’ Retirement System made a difficult decision faced with a $56 billion funding shortfall. Trustees adopted a new set of actuarial assumptions that included lowering the investment return assumption from 7.75% to 7.5%. That shortfall has since grown to $64.5 billion.
The change may seem minor, but in reality it is a key admission that the $152 billion retirement system is not immune from the market forces that have forced many pension boards to bring