CalSTRS Names Altius Associates as International Alternative Investment Advisor
Sacramento, CA – The California State Teachers’ Retirement System has selected Altius Associates Limited as its advisor for international alternative investment partnerships. Altius Associates, with offices in London, Copenhagen and Richmond, Virginia, will recommend non-U.S. partnerships, perform due diligence and assist and advise CalSTRS staff on those investment opportunities.
“Altius provides the international experience and customized service we need to continue the excellence of our AI portfolio,” said Real Desrochers, CalSTRS director of alternative investments. “We like their hands-on approach with clients. They have an outstanding ability to help us add value to the international AI portfolio.”
Altius Associates was selected through a competitive process necessary due to the expiration of the current general AI portfolio consultant contract with Pathway Capital Management, LLC. Advisors to recommend U.S. partnerships will be selected through a competitive process to begin later this summer.
CalSTRS’ international AI portfolio can contain investments in Canada, the United Kingdom and Continental Europe. Market value is currently $585 million with committed values of $1.4 billion. The total AI portfolio has a market value of $4.4 billion with committed values of $8.8 billion within CalSTRS’ $100 billion investment portfolio.
The AI portfolio has generated a 20.4 percent compounded annual rate of return since its inception in 1988. Last October, the CalSTRS Investment Committee increased the alternative investment asset allocation from 5 percent to 8 percent. Projections estimate the AI portfolio will grow to $11 billion by 2006, with the international portion expected to reach $1.7 billion.
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.