---
title: CalSTRS Reduces Public Equity Target
description: CalSTRS Reduces Public Equity Target.
image: https://dakotafunds.com/hubfs/Imported_Blog_Media/san_antonio_pensions-4-1.jpg
---

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# CalSTRS Reduces Public Equity Target

**Written by: ** Koncheng Moua, Director of Data Management and Strategy 

![](https://dakotafunds.com/hubfs/Imported_Blog_Media/san_antonio_pensions-4-1.jpg)

The California State Teachers’ Retirement System is reducing their Global Equity target allocation by 4% to 38% of the fund. 

As a result, the target to Private Equity increased to 14% from 13% and the Inflation Sensitive target allocation increased from 6% to 7%. According to meeting materials, the increases to Private Equity and Inflation Sensitive “support investments in the Sustainable Investments & Stewardship Strategies (SISS) portfolio and supports CalSTRS’ Net Zero strategy” and will “provide further opportunity to provide improved risk-adjusted returns through the Collaborative Model.”

In addition, the Fixed Income target allocation was increased by 2% to 14% of the fund. The 2% increase will develop the Private Credit Direct Lending strategy. “The shift from Global Equity to Direct Lending provides a small reduction in Economic Growth risk, adding a modest diversification benefit”.

Meketa assisted with the Asset Liability study.

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