CalSTRS Selects RCLCO as Investment Committee Real Estate Consultant
RCLCO will advise the committee on strategy, policy and practices of the Real Estate Program
WEST SACRAMENTO, Calif. (Nov. 2, 2017) – At its November 1 meeting, the California State Teachers’ Retirement System Investment Committee announced the selection of RCLCO as the Committee’s new real estate consultant. The contract, which depending on the result of negotiations, will begin in March 2018, is for a three-year term, with a possible two-year extension. The current contract—held by the Townsend Group—expires in February 2018.
As part of the normal course of business, in August 2017, CalSTRS issued a request for proposal for real estate consultant services and eight proposals were received. After completing the competitive RFP process, three firms were selected for finalist interviews: PCA, RCLCO and the incumbent Townsend Group. The Townsend Group has served the Investment Committee for the past nine years.
“Retaining the services of specialty consultants—like RCLCO— is not only a board policy requirement, but is significant to the performance of our fiduciary responsibilities,” said Investment Committee Chair Harry Keiley. “During the interview process, RCLCO impressed upon us that they add perspectives from operators in the industry, which will incorporate fresh insights to future strategic and policy discussions.”
RCLCO will work for the Teachers’ Retirement Board’s Investment Committee and with CalSTRS investment staff to monitor and comment on the real estate portfolio performance and policy matters. However, they are specifically excluded from recommending any individual investment opportunity.
“On behalf of the board, the Investment Committee thanks the Townsend Group for its nearly decade of expertise and working with the board and staff to manage and lower the risk in the Real Estate Portfolio, as well as implement a modified benchmark that aligned with a more conservative strategy,” said Mr. Keiley.
The California State Teachers’ Retirement System, with a portfolio valued at $215.3 billion as of September 30, 2017, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans. CalSTRS also provides disability and survivor benefits. CalSTRS serves California’s more than 914,000 public school educators and their families from the state’s 1,700 school districts, county offices of education and community college districts.
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