SACRAMENTO, Calif. — CalSTRS hired Bivium Capital Management, Leading Edge Investment Advisors, Progress Investment Management and Capital Prospects for its new $1.8 billion U.S. equities emerging managers program. Portfolio amounts for each manager have not been set, according to a news release from the $173.7 billion California State Teachers' Retirement System, Sacramento.CalSTRS also picked Northern Trust, FIS Group, Attucks Asset Management and Legato Capital Management to be placed on a pre-approved list of managers of emerging managers that will serve as future additions or replacements to existing managers.
The hires are a result of an RFP the system issued in May.
Separately, the system's board on Feb. 7 increased its targets to real estate and private equity by one percentage point each, cutting U.S. equity and fixed income. Real estate increased to 10% and private equity, to 8%; domestic equity would be cut one percentage point to 41%, with fixed income trimmed to 20% from 21%. International equity will remain unchanged at 21%. The changes are part of the system's move over the past two years toward long-term targets of 40% domestic equity, 20% each fixed income and international equity, 11%, real estate and 9% private equity.
The board also extended the contracts of its two alternative investment consultants, Altius Associates and Cambridge Associates, for three months to May 31, in order to give staff time to review RFPs issued in October. CalSTRS is looking for consultants to assist with private equity deals in the Americas, Europe, Middle East and Africa, and Asia Pacific. The pension fund has a $15 billion private equity portfolio. Cambridge advises on deals in the Americas, and Altius, in Europe.
