The California State Teachers’ Retirement System (CalSTRS) has selected four investment management firms to construct, manage and monitor a fund of funds for its US$1.8 billion U.S. Equities Developing Manager Program.
The firms chosen were San Francisco-based Bivium Capital Management, Leading Edge Investment Advisors and Progress Investment Management, as well as Capital Prospects of Stamford, Conn. The dollar amounts for each contract have not yet been established.
“These firms will help us find the stars of tomorrow as we seek opportunities to diversify and build the retirement fund for California’s teachers,” says CalSTRS chief investment officer Christopher J. Ailman.
The pension fund defines a developing manager as any investment management firm with less than $2 billion under management.
In addition to awarding the contracts, CalSTRS used this competitive process to establish a pool of qualified investment management firms that will serve as future additions and replacements for the program. The pool includes Northern Trust, FIS Group Inc., Attucks Asset Management, and Legato Capital Management.
U.S. equities are targeted at 41% of the $174 billion CalSTRS investment portfolio.
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