By Arleen Jacobius
Source: Pensions & Investments
CalSTRS’ ambitious collaborative model is starting to experience growing pains.
Staff members of the $314.8 billion West Sacramento-based pension fund, the nation’s second-largest public pension plan, are starting to get some pushback from their board as they work to implement version 2.0 of the model that will result in plan officials having more control over the fund’s investments.
Designed to reduce costs, control risk and boost returns, CalSTRS’ collaborative model is a bundle of investment strategies, differing in each asset class, that includes managing more assets in-house, co-investing and, in real estate, acquiring minority or majority interests in money managers.