According to a press release, CalSTRS – at $176 billion in assets, the second-largest public pension fund in the U.S. – wants to find advisors to recommend partnerships, perform due diligence and assist and advise CalSTRS staff. This process is prompted by the expiration of existing contracts with CalSTRS’ U.S. advisor, Cambridge Associates LLC, and its European advisor, Altius Associates.
The request for proposals aims at establishing one nondiscretionary alternative investment advisors in each of three global regions, though an advisor may be awarded more than one region. The regions are:
- The Americas – North and South America
- Europe – Europe, the Middle East and Africa
- Asia/Pacific – Asia/Pacific and Australia
The firms selected will be fiduciaries to CalSTRS and must be registered investment advisors.
The final filing date for proposals is November 29, 2007, with selections expected by early 2008. A copy of the request for proposal is available at http://www.CalSTRS.com/rfp
As of September 30, the alternative investment portfolio had a market value of $13.7 billion. Geographically, the alternative investment portfolio is invested 70% domestically and 30% internationally, according to CalSTRS. The California State Teachers’ Retirement System administers retirement, disability and survivor benefits for California’s 795,000 public school educators and their families from the state’s 1,400 school districts, county offices of education and community college districts.