CalSTRS plans to create a pool of transition managers to help implement major changes in the pension fund's asset mix. The $146 billion California State Teachers' Retirement System, Sacramento, is seeking at least one transition manager to help in portfolio liquidation, asset allocation changes and portfolio rebalancing, according to an RFP on the system's website.
In September, the board voted to reduce fixed income to 20% from 26%, U.S. equity to 40% from 41%, and cash to zero from 1%. The real estate target will be increased to 11% from 6%, and private equity will grow to 9% from 6%. The changes are expected to take up to six years to implement. Transition manager selections are expected next spring.