CalSTRS is searching for up to 10 managers to run equity strategies with an environmental, social and governance focus, spokesman Ricardo Duran said.
The $193.2 billion California State Teachers' Retirement System, West Sacramento, is looking to award up to six contracts for equity ESG strategies and up to four contracts for equity strategies that are corporate governance-focused. The RFP said the amount of money that would be invested by the managers will be determined by CalSTRS, but it does not offer any specifics.
The strategies can be active or passive, U.S. or global equity strategies.
“We are looking for managers with very well-established capabilities to integrate ESG considerations into every aspect of the investment decision-making process,” said Christopher J. Ailman, chief investment officer, in a statement. “Our preferred managers will have a successful track record of ESG considerations in areas such as security analysis, portfolio modeling and investment analytics, and will demonstrate an ability to generate excess market returns over the long term.”
Managers must have at least $225 million in total assets, have managed an ESG or corporate governance-focused public equity trading strategy for at least two years and currently have at least $100 million in managed assets in an ESG or corporate governance-focused public equity strategy.
In addition to awarding contracts for the strategies, CalSTRS will use the search to establish a pool of qualified investment management firms for the designated investment strategies, the RFP said. “This pool will be used to replace firms that might be terminated in the future or to add a firm(s) as necessary,” it said.
CalSTRS has a $109 billion equity portfolio.
The RFP is available on CalSTRS' website. Prospective managers must ensure their data is correctly uploaded into the eVestment database by 5 p.m. PDT Oct. 28. CalSTRS expects to select managers by mid-2017.