California State Teachers' Retirement System, West Sacramento, is searching for at least one manager to run $150 million total in active low-volatility equity and covered call strategies, according to a solicitation notice on the $166 billion pension plan's website.
The allocation will be part of CalSTRS' innovation portfolio, which seeks to improve the risk-adjusted returns of the pension fund's investment portfolio.
Passive low-volatility strategies will not be considered, but the pension plan will consider both active and passive covered calls strategies. Domestic and non-U.S. proposals across all capitalization sizes and investment styles will also be considered.
One or more managers will be hired, and CalSTRS will also create a pool of managers to potentially use for additional allocations or to replace terminated managers.
The alternative solicitation process is available on CalSTRS' website. Information must be uploaded to the eVestment Alliance manager database by 5 p.m. PDT July 19. A hiring date has not been determined.
CalSTRS spokesmen did not return a telephone call by press time for additional information.