CalSTRS considers HUGE move to safety: Report

CalPERS, CalSTRS wants independent BofA Chair

One of the largest U.S. pension funds is thinking of shifting up to $20 billion away from stocks, real estate and private equity.

The Los Angeles Times reported Wednesday that, at its last meeting, the California State Teachers' Retirement System (CalSTRS), was considering a new strategy that would move as much as 12 percent of its $191-billion portfolio into safer investments, including long-term Treasury bonds.

The discussion about the possible flight to safety comes at a time when global financial markets have seen increasing volatility, with U.S. equities dropping more than 6 percent in the last month. In fact, the CBOE Volatility index (), also know as the fear gauge for investors, has risen more than 90 percent in the last month.

Chris Ailman
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The report said CalSTRS had not made a decision, and that officials at the meeting said they were not in a hurry to make one.

Click here for the full report.