CalSTRS is searching for a permanent consultant to assist with manager sourcing and selection for its $20.6 billion risk-mitigating strategies portfolio, according to an RFP.
Cambridge Associates is the interim risk-mitigating strategies consultant for the $239.3 billion West Sacramento-based California State Teachers’ Retirement System. “All firms meeting the minimum qualifications are encouraged to bid” said Vanessa Garcia, spokeswoman in an email in response to an inquiry about whether Cambridge would be invited to bid.
CalSTRS has a 10% allocation to risk-mitigating strategies that aims to diversify the pension plan’s exposure to growth assets and provide downside protection in equity market drawdowns.
Risk-mitigation strategies is made up of 45% to trend following, 40% to long-duration U.S. Treasuries, 10% to global macro, 5% to systematic risk premium and zero to other strategies, expected to be identified in the future.
Responses are due July 10. CalSTRS officials have not determined when the board will make a selection. The RFP is posted on CalSTRS' website.