Sacramento, CA - The California State Teachers' Retirement System will launch on April 20 a search for up to six active equity managers to invest about 10 percent of its international equity portfolio, approximately $3 billion, in emerging markets. This action follows the CalSTRS board's conclusion of an extensive study of the opportunities and risks in investing in emerging markets.

Final filing date for bidders is June 7 with the selections announced this fall. A copy of this contract opportunity will be available in the About CalSTRS section of the CalSTRS Web site, www.calstrs.com, on April 20.

"This new program will provide us additional diversification in the international market place," said Elleen Okada, CalSTRS Director of Global Equities. "The investment committee has gone through a comprehensive effort to craft an excellent emerging market program. It will ensure we achieve the best return on our members' funds while considering the attendant risks in this investment category."

The firms selected will have full discretion to manage their allocation, including country and stock selection, within the program's benchmark, the Morgan Stanley Capital International Emerging Markets Free ex-Tobacco Index. Funds for this program will come from normal cash flow.

The CalSTRS board has chosen an unrestricted investment universe for emerging market investments. The emerging market managers must consider CalSTRS' investment policies and standards and 20 risk factors adopted by CalSTRS in making investment decisions. Those risk factors range from business practices such as securities regulations and fiscal transparency to legal and other practices such as workers and political rights and environmental issues.

CalSTRS currently has investments in emerging markets on an opportunistic basis through its active international equity managers.

CalSTRS, at $127 billion, is the third-largest public pension fund in the United States. It provides retirement, disability and survivor benefits to California's public school teachers from kindergarten through community college, serving more than 755,000 members and their families.