California State Teachers’ Retirement System Seeks Sustainable Investments Managers

News release

 Sacramento, CA  – The California State Teachers’ Retirement System today launched a search for up to four investment management firms with expertise in managing environmentally focused sustainable investment strategies. The final filing date for proposals is June 21 with selections expected in the fall of 2006. 

The contract awards may include one or more approaches in the environmentally focused Sustainable Investments spectrum including but not limited to best in class and positive screened strategies. Additionally, contracted providers will be required to report on the environmental impact of companies relevant to portfolio holdings.

“These managers will create a road map for CalSTRS in the sustainable investment universe,” said Elleen Okada, CalSTRS’ director of global equities and operations. “Right now, the sustainable market is multifaceted and emerging; there are a variety of ways to make investments in environmentally-oriented public securities. These managers will help us define the factors that present the optimum investment returns coupled with environmental performance.”

Products under consideration are in public equities offering separate accounts using long-only strategies. The dollar amount and number of strategies for CalSTRS’ Sustainable Investment component has not been determined

In addition to awarding one or more contracts, CalSTRS may also use this process to establish a pool of qualified investment management firms as replacements or additions in the future.

This request for proposal is the culmination of a 2005 CalSTRS’ Investment Committee decision to map out the sustainable investment universe. The combined domestic equity and international equity portfolio allocation is 65 percent of the total investment portfolio.

With a $142 billion investment portfolio, the California State Teachers’ Retirement System is the second-largest public pension fund in the United States. It provides retirement, disability and survivor benefits to California’s 776,000 public school educators from kindergarten through community college.