California State Teachers’ Retirement System’s (CalSTRS) investment committee has approved a new risk system, Pensions & Investments reports. The new system will overlay six risk factors against all investments in the system’s overall $146.4 billion portfolio.
The new risk factors to be included are global economic growth rate, interest rate risk, inflation risk, liquidity fluid market, leverage/financing and governance risk. CalSTRS, which has not set a formal date for the implementation of the overlay system, will carry out a more detailed study in the fall of 2011 by its staff and consultant, Pension Consulting Alliance.
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