California State Teachers' Retirement System trustees are expected to approve an RFP today for 16 U.S. active equity manager contracts for a total of $15 billion.
Contracts are expected to go to large- and small-cap growth and value managers and one or more enhanced index managers.
The $86 billion Sacramento-based fund also is expected to set up a pool of active domestic equity managers to replace managers that are hired but subsequently terminated. The RFP is expected to be out this month with a filing date sometime in April. The final selection date isn't scheduled yet. The contracts are expected to be open-ended.
U.K. pension funds had a 16% total return in 1997, according to estimates by WM Co. The total return compares with a 10.7% return in 1996.
Last year's returns were buoyed by 22% return from U.K. equities, comprising 54.1% of British pension assets at year-end. European equities, accounting for 9% of assets, provided a 28.4% return. North American equities, comprising only 4% of assets, provided a 33.9% return. Returns were dragged down by negative Asian equity returns. Japanese equities, at 3.1% of assets, lost 18.7%. Pacific Basin (ex-Japan) stocks, at 2.5% of assets, fell 31.3%.
