After the March freak-out, when even selling a Treasury was tough, a shaky equilibrium prevails.
Investors’ plan allocations to US equities averages 47.3%, the highest level since 2007, says Wilshire.
The volatility of equity markets means CalSTRS staff wants to be less dependent on stock investments.
A decade ago, the largest US pension plan decided to abandon its home country bias favoring US stocks. Now, pension officials wonder if it was the right move as US stock performance has shined.
But gains are down from previous year’s 14.6%. Domestic stocks, private equity did the best.
Gains 0.88% after registering first loss in nearly three years during Q1.
Returns surpass 7% rate assumption, but fall short of last year’s 12.95%.
For a change, the small-stock S&P 600 outpaced its large-cap sibling, with healthcare a big plus.
Pensions returned 0.37% during Q1, despite Canadian equities falling 3%.
De-risking measures prep for possible market shock.
Europe seeing recovery, while China presents risk, opportunity.