CalSTRS plans to hire Leading Edge Investment Advisors, Community Capital Management and Access Capital Strategies for the systems new developing manager program for fixed income, pending contract negotiations. Leading Edge is a fund-of-funds manager, while Community Capital and Access Capital are direct investment managers. Sherry Reser, spokeswoman for the $164 billion California State Teachers Retirement System, said the exact amounts to be awarded to each firm have not been determined.
Under the program, $300 million to $500 million total will be awarded to developing managers that each have less than $2 billion under management. The eventual mandates will focus on core-plus and high-yield bond strategies, as well as special situations in the mortgage and municipal markets related to housing investments in California, according to a CalSTRS news release.
Progress Investment Management and Third Stage Investment Group were placed on a list of standby firms that will serve as future additions and replacements for the program.