CalSTRS Seeks Core Plus and High Yield Bond Managers Request for Proposal Deadline April 12.SACRAMENTO Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Calif. -- The California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). State Teachers' Retirement System today issued a request for proposal to establish a pool of managers for both the High Yield bond and Core Plus mandates. This request for proposal introduces a new mandate for Core Plus managers that will actively manage approximately $4.5 to $6 billion. The High Yield bond manager allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as will remain at its current level of between $1.5 billion and $2.5 billion. The final filing date for proposals is April 12 with selections expected in early summer. A copy of the request for proposals is available on the CalSTRS Web site at www.CalSTRS.com/rfp. "CalSTRS has historically approached its fixed income asset management fairly conservatively. We believe that a modest increase in the level of active risk within the fixed income portfolio will also provide the potential for greater returns above the benchmark," said Michelle Cunningham, director of fixed income. "Gradually shifting a portion of the portfolio invested in the Core to Opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. active strategies will enable us to better position the portfolio to meet its return objectives." At $31 billion, the fixed income asset class represents the second largest asset class in CalSTRS' portfolio. Currently, all of the investment grade assets are managed internally; high yield assets are managed externally. The firms selected through this competitive process will have full discretion to actively manage their mandates. This request for proposal is the culmination of a series of presentations that led to the December 2005 CalSTRS Investment Committee decision made to expand the fixed income portfolio's investable universe from the Lehman Aggregate and High Yield universe. The multi-phased restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). process will move from the current 95 percent Core/5 percent Opportunistic structure to an 80 percent Core/20 percent Opportunistic structure. Within the Opportunistic strategies portion of the portfolio, a Core Plus allocation was added to the current High Yield allocation. With a $137 billion investment portfolio, the California State Teachers' Retirement System is the second-largest public pension fund in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . It provides retirement, disability and survivor benefits to California's 776,000 public school educators from kindergarten kindergarten [Ger.,=garden of children], system of preschool education. Friedrich Froebel designed (1837) the kindergarten to provide an educational situation less formal than that of the elementary school but one in which children's creative play instincts would be through community college. |
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