Institutional Investors

CalSTRS experiments with new opportunities in a tough market


Global macro strategies take centre stage within innovation portfolio to reduce risk

By Susan Barreto

Steven Tong

Chris Ailman
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