CalSTRS Seeks Firms for Developing Manager Programs in Fixed Income and U.S. Equities

News release

 SACRAMENTO, CA  – The California State Teachers’ Retirement System has launched searches for investment management firms for its Fixed Income and U.S. Equities developing manager programs.The final filing date for both requests for proposals is May 30, 2007, with selections expected in the fall of 2007.See for information on how to obtain a copy of the requests for proposal.

CalSTRS defines a “developing manager” as any investment management firm with less than $2 billion under management. Dollar amounts have not yet been established for these programs.

For the developing manager program in the Fixed Income portfolio, CalSTRS intends to award one or more contracts to:

  1. Developing investment management firm(s) who will, as fiduciaries, directly manage a portfolio on behalf of CalSTRS; or,
  2. Investment management firm(s) who will construct, monitor and manage a portfolio comprised of developing managers within a fund-of-funds format.

For this request for proposal, fixed income managers are defined as U.S. and global fixed income managers. Non-dollar and emerging markets managers are not covered in this request for proposal.

The one or more firms selected for the developing manager program in the U.S. Equities portfolio will expand a $1 billion mandate currently shared by FIS Funds Management, Northern Trust and Russell Investment Group. The new firm(s) will construct, manage and monitor a fund of funds comprised of developing managers.

In addition to awarding one or more contracts with each proposal, CalSTRS may also use this process to establish a pool of qualified investment management firms as additions or replacements in the future. In the event that none of the proposals are satisfactory, no selection will be made.

With a $162.2 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 800,000 public school kindergarten through community college educators and their families.