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Sacramento, CA – The California State Teachers' Retirement System
seeks consultants for a new governance structure in its alternative investment
portfolio. Two requests for proposals were issued February 8, with final
filing dates of April 5. The RFPs are available on the CalSTRS Web site
at www.calstrs.ca.gov.
“We’re dividing the consultant functions to create a structure
that will position us for future growth in the AI portfolio,” said
Christopher J. Ailman, CalSTRS chief investment officer. “With the
recent increase in the alternative investment asset allocation from 5
percent to 8 percent, we’re likely to have a $12 billion AI portfolio
by 2006.”
One RFP is for a single consultant to work closely with the Investment
Committee to monitor and comment on the AI portfolio performance and policy.
The investment committee consultant will not review specific transactions.
The other RFP will establish a pool of up to eight consultants to serve
as gatekeepers, advisors and independent fiduciaries. These consultants
will screen available alternative investment opportunities, perform due
diligence on prospective investments and assist and advise the CalSTRS
staff.
The RFPs are being issued because the current general AI portfolio consultant
contract with Pathway Capital Management LLC is expiring.
The CalSTRS investment portfolio, at $100.8 billion, is the third largest
pension fund in the nation. At year’s end, the alternative investment
portfolio had market value of $4.4 billion, with committed values of $8.8
billion. The AI portfolio contains direct and co-investments, limited
partnerships and secondary interests. It has generated a 23.1 percent
compounded annual rate of return since its inception in 1988.
CalSTRS administers retirement, disability and survivor benefits for
California’s public school educators in grades kindergarten through
community college, serving approximately 687,000 members and benefit recipients.
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