CalSTRS will search for nine new investment options and re-examine three existing funds for its $62 million Voluntary Investment Program 403(b) plan, said Sherry Reser, public information officer. The California State Teachers Retirement System, Sacramento, has not finalized details of the search.
The new funds will be: intermediate credit bond; Russell 3000; active small-cap to midcap growth equities; active midcap to large-cap value equities; active midcap to large-cap growth equities; active international equities; and three asset allocation funds.
The existing funds are: the Provident Institutional TempCash Prime Money Market Mutual Fund; the California Investment Trust S&P 500 Fund; and Deutsche Asset Management EAFE Equity Index Fund. The plan also has a self-managed mutual fund window with access to 3,000 funds, which will not be affected.
CalSTRS staff will look at the top seven to 10 funds in each asset class, including the existing funds, and select options from those funds, Ms. Reser explained.
Separately, investment advice by Financial Engines, to be paid by CalSTRS, also is expected to be rolled out in September.
Also, CalSTRS is looking into forming a 457 plan, said Ms. Reser. Officials are considering alternative ways of administering the plan, including creating a joint 457 plan with the $150 billion California Public Employees Retirement System, Sacramento. So far, the matter has not been scheduled on the CalSTRS boards agenda.