The governing board of the New York State Teachers' Retirement System, Albany, has approved a one-year renewal for Callan LLC as the system's general investment consultant as well as a series of one-year renewals for various asset managers. The renewals were approved by the board Thursday at its quarterly meeting.
The Callan contract, effective May 1, calls for the consultant to "advise on asset allocation and manager research and monitoring," said the board resolution approving the renewal. Callan also will "provide board and staff education," the resolution said. If required by the pension system, Callan will "provide individual fund due diligence for alternative investments, including private equity and private debt."
Asset renewals were:
- Arrowstreet Capital for $1.51 billion as a global equity manager benchmarked to the MSCI ACWI index and for $775.4 million as an international equity manager benchmarked to the MSCI ACWI ex-US index, both effective March 23.
- BlackRock for $1.43 billion as a manager of commercial mortgage-backed securities, effective April 3.
- Cohen & Steers Capital Management for $1.33 billion as a manager real estate investment trusts and real estate operating companies effective February 12.
- RhumbLine Advisors for $878.3 billion as a passive international equity manager, benchmarked to the MSCI ACWI ex-US Index, effective March 30.
- Principal Real Estate Investors for $407.3 million to manage real estate investment trusts and real estate operating companies, effective February 11.
- Columbia Management Investment Advisers for $341.7 million as an active U.S. high-yield manager benchmarked to the ICE BofAML BB-B US High Yield Constrained Index (HUC4) (f/k/a Bank of America Merrill Lynch BB-B U.S. High Yield Constrained Index), effective March 6. JP Morgan Investment Management for $332.2 million an as an active U.S. high-yield manager benchmarked to the ICE BofAML BB-B US High Yield Constrained Index (HUC4) (f/k/a Bank of America Merrill Lynch BB-B U.S. High Yield Constrained Index) effective March 5.Xponance for $296.3 million as a manager of international equity managers, benchmarked to the ACWI ex-US Index, effective April 25.
- Ariel Investments $294.7 million as an international equity manager benchmarked to the MSCI ACWI ex-US, Index effective April 10.
- Raith Capital Partners for $149. 6 million as a debt separate account adviser to advise on the acquisition, management and exit of public and private opportunistic commercial real estate debt opportunities, effective February 7.
- AEW Capital Management for $83.5 million to manage real estate investment trusts and real estate operating companies effective April 15.
The board also approved renewing for one year, effective March 7, its contract with Bank of New York Mellon as a securities lender for the system's public equity and fixed income securities. Separately, the board reported that the pension system's assets were $129.6 billion as of Dec. 31, down 15% from the $152.4 billion as of Dec. 31, 2021. The data is unaudited.
The board also reported the net unaudited return on investment was -4.6% for the three months ended Sept. 30, the first quarter of the current fiscal year. The unaudited net return for the year-ago period was 1.0%.