CALSTRS' Asset Allocation Is 'Aggressively Neutral,' CIO Ailman Says

The video discusses the current investment performance, highlighting a 6.8% return against a 7% target. It explores the potential for an easing cycle in interest rates and the implications for investment strategies. The speaker emphasizes a neutral asset allocation approach, balancing between not being long or short in asset classes. The focus is on long-term investment horizons, with a 10-year return of 10% and a 30-year return of 8.1%. The video also introduces risk mitigating strategies, including momentum strategies and global macro, to diversify the portfolio and manage risks in equity declines.

What was the investment return mentioned in the video, and what was the target return?

• 7.2% return with a 6.8% target

• 6.5% return with a 7% target

• 7% return with a 6.8% target

• 6.8% return with a 7% target

What does the term 'aggressively neutral' refer to in the context of asset allocation?

• Being heavily invested in equities

• Focusing solely on short-term gains

• Maintaining a balanced position without being long or short

• Avoiding any investment in fixed income

Why is the one-year investment performance compared to a mile in a marathon?

• Because it is faster than expected

• Because it is a short-term measure in a long-term strategy

• Because it is the only measure that matters

• Because it is the most important metric

What is the purpose of introducing risk mitigating strategies in the portfolio?

• To focus solely on fixed income

• To eliminate all forms of risk

• To diversify and reduce risk during equity declines

• To increase correlation with global equities

Which of the following is NOT mentioned as a risk mitigating strategy?

• Momentum strategies

• Global macro

• Long bonds

• Cryptocurrency investments