California State Teachers' Retirement System, Sacramento, will consider streamlining its alternative investments process following the selection of a new senior investment officer for alternative investments.
One proposal recommended by staff and consultant Pathway Capital is to allow the staff to invest in alternatives funds if CalSTRS' investment committee has approved a prior investment in a related fund with the same general partners. The staff said alternative investment general partnerships now have many more sources to raise capital and are becoming less responsive to limited partners. The $80 billion system has a target allocation of 5% of assets for alternative investments.
An ad hoc committee of CalSTRS staff and a board member could pick a senior investment officer as early as the end of October. Solomon Owayda, who had held the post, resigned in March.
Matrix Global Investments acquired Carret and Co., a value equity manager that runs close to $1 billion in assets for pension funds, foundations and individuals, confirmed Matrix President Alastair Short. Terms were not disclosed. Matrix is a holding company that acquires majority positions in money managers. It was capitalized with $60 million last month by Castle Harlan, a merchant bank.
Teachers' Retirement System of Illinois, Springfield, is taking steps to replace Executive Director Robert Daniels. Staffers will prepare an RFP for a head hunting firm to assist, said John Day, acting executive director. The RFP will be presented to the board later this month. Mr. Daniels announced his plans to retire in January. Until then, Mr. Daniels will be on vacation.
State Street Global is researching the creation of pre-emerging market index-type funds, said Arlene M. Rockefeller, principal and head of global enhanced equities. State Street is looking at creating funds for Botswana, Ghana, Ivory Coast, Kenya, Mauritius, Ecuador, Trinidad and Tobago and Bangladesh. It likely also would create three regional funds, placing the pre-emerging markets in their respective regions.
State Street is evaluating the risk and could launch them soon, but no date has been set.