CalSTRS Seeks Investment Firms Specializing in Corporate Governance.SACRAMENTO, Calif. -- The California State Teachers' Retirement System today launched a search for one or more investment management firms with experience in corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. and a successful track record in relational investing to complement and add to its current relational portfolio. The final filing date for proposals is July 21 with selections expected in the fall of 2006. A copy of the request for proposals is available at www.CalSTRS.com/rfp. The selected managers will invest in and actively work with underperforming publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. (either US or non-US equity securities). The relational investment strategy is an active subset A group of commands or functions that do not include all the capabilities of the original specification. Software or hardware components designed for the subset will also work with the original. of the US and non-US equity allocations with approximately $91.5 billion currently under management. No dollar amount has yet been established for this additional allocation. "We believe that significant alpha can be added to the Fund, above and beyond the returns available from its core equity portfolio," said Elleen Okada, CalSTRS' director of global equities and operations. "This is an opportune op·por·tune adj. 1. Suited or right for a particular purpose: an opportune place to make camp. 2. Occurring at a fitting or advantageous time: an opportune arrival. time to expand the corporate governance investment strategy into the non-US equity markets as well as increasing our US exposure. The relational investment strategies should provide an overall positive effect on our broader public market investments and heighten height·en v. height·ened, height·en·ing, height·ens v.tr. 1. To raise or increase the quantity or degree of; intensify. 2. To make high or higher; raise. v.intr. our corporate governance message." Successful firms will propose an investment strategy that relies on active intervention in a company's long-term strategy, capital structure and capital allocation plan, and its corporate governance, including, but not limited to board structure and board composition. In addition to awarding one or more contracts, CalSTRS may also use this process to establish a pool of qualified investment management firms as replacements or additions in the future. In the event that none of the proposals is satisfactory, no selection will be made. With a $146 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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