The California State Teachers’ Retirement System, the second-largest pension fund in the country, has selected Hermes Fund Managers as one of its two commodity managers.
Reuters reported that CalSTRS has invested an undisclosed amount out of the allocation total of $150 million to London-based Hermes. The name of the second commodity manager was not disclosed.
CalSTRS spokesman Ricardo Duran explained to Reuters that the pension fund’s plan to increase its allocation to commodities had progressed slowly over the past three years to tame inflation levels.
Specializing in alternative investments, equities and fixed income, Hermes manages a total of approximately $166 billion across its platforms. CalSTRS manages about $150 billion for the state’s educators.