December 2, 2003

Sacramento, CA – The California State Teachers’ Retirement System has announced the selection of three investment management firms for its newly established External Equities Developing Manager Program: FIS Funds Management, Inc., of Philadelphia, Penn.; Northern Trust Global Advisors, Inc., of San Francisco; and Russell Investment Group of Tacoma, Wash.

These firms were selected through a competitive process to construct, manage and monitor a fund of funds comprised of developing managers. (CalSTRS defines “developing manager” as any investment management firm with less than $2 billion under management.)

The initial amount to be invested in this program is $600 million within a $12.3 billion actively managed U.S. equity portfolio. CalSTRS’ total U.S. equity portfolio is $45 billion.

“We’re pleased to have firms of this caliber and knowledge to launch this excellent opportunity to add value to the portfolio,” said Christopher J. Ailman, CalSTRS Chief Investment Officer. “These three companies are well established in the industry so are ably positioned to attract the smaller firms we need in our new program.”

Developing managers who are interested in working with CalSTRS can contact these fund-of-funds managers directly to begin the due diligence process. Contact information is as follows:

• For FIS Funds Management, Ed Swan, (215) 567-1100
• For Northern Trust, Clayton Jue, (415) 765-6412
• For Russell Investment Group, Tereasa Gandhi, (253) 502-4233

CalSTRS, with a $107 billion portfolio, is the nation’s third largest public pension fund. It administers retirement, disability and survivor benefits for California’s public school educators in grades kindergarten through community college, serving more than 715,000 members and benefit recipients.