CalSTRS issued an RFP for active currency managers to run a total of $4.8 billion to $6.8 billion, or 15% to 20% of the fund’s overall currency exposure, confirmed Sherry Reser, spokeswoman for the $169 billion California State Teachers’ Retirement System, Sacramento. The fund’s dynamic currency overlay program targets 50 basis points above the MSCI EAFE plus Canada, unhedged. Staff plans to hire a pool of managers, but Ms. Reser could not say how many. The RFP is available on the fund’s website at www.calstrs.com/rfp. Proposals are due Oct. 5. No date for a selection was given.
Separately, five managers were hired to run a combined $225 million in four sustainable investment portfolios. New Amsterdam Partners will run $75 million in active domestic large-cap equities; Acuity Investment Management, $50 million in active Canadian equities; Generation Investment Management, $50 million in active global equities; and Light Green Advisors and RhumbLine Advisors will split a $50 million active large-cap U.S. equity portfolio. The firms will consider environmental factors in their stock-selection processes, according to a CalSTRS news release. Funding will come from cash, said Ms. Reser.
“Through this program and with these partners, we are using our members’ dollars to help address such environmental issues as climate change while generating sound returns,” CalSTRS CEO Jack Ehnes said in the news release.
The pension fund already invests $285 million in clean technology through its $11.7 billion private equity program.
