CalSTRS, West Sacramento, hired Pension Consulting Alliance and Meketa Investment Group as general investment consultants to advise the investment committee, confirmed spokeswoman Michelle Mussuto.
This is a new arrangement for the $175.9 billion California State Teachers' Retirement System, which previously had one consultant, PCA.
The investment committee on Monday approved rehiring Pension Consulting Alliance for a three-year contract effective July 1, with the possibility of two one-year extensions. PCA has been the pension fund's sole general consultant for the last 25 years. Ms. Mussuto said the committee selected Meketa Investment Group for the same contract length.
“CalSTRS' quarter-century-long relationship with PCA has been a fruitful one, and we look forward to continuing it,” said Harry Keiley, investment committee chairman, in a statement. “However, we feel the growing complexity of the portfolio and the challenges of today's investment environment require the talents of two firms, and Meketa and PCA rose to the top of a very competitive group.”
She said the combined contract for the two firms will be $3 million, but the exact split of how much each firm will be paid has not yet been determined nor has the scope of work for each.