CalSTRS Seeks Managers for a $3 Billion Emerging Market Equity Program.SACRAMENTO, Calif. -- The California State Teachers' Retirement System will launch on April 20 a search for up to six active equity managers to invest about 10 percent of its international equity portfolio, approximately $3 billion, in emerging markets. This action follows the CalSTRS board's conclusion of an extensive study of the opportunities and risks in investing in emerging markets. Final filing date for bidders is June 7 with the selections announced this fall. A copy of this contract opportunity will be available in the About CalSTRS section of the CalSTRS Web site, www.calstrs.com, on April 20. "This new program will provide us additional diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. in the international marketplace," said Elleen Okada, CalSTRS Director of Global Equities. "The investment committee has gone through a comprehensive effort to craft an excellent emerging market program. It will ensure we achieve the best return on our members' funds while considering the attendant risks in this investment category." The firms selected will have full discretion to manage their 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 , including country and stock selection, within the program's benchmark, the Morgan Stanley Capital International Morgan Stanley Capital International (MSCI) This firm publishes a number of well known benchmarks, such as the MSCI World Index. Emerging Markets Free ex-Tobacco Index. Funds for this program will come from normal cash flow. The CalSTRS board has chosen an unrestricted investment universe for emerging market investments. The emerging market managers must consider CalSTRS' investment policies and standards and 20 risk factors adopted by CalSTRS in making investment decisions. Those risk factors range from business practices such as securities regulations and fiscal transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. to legal and other practices such as workers and political rights and environmental issues. CalSTRS currently has investments in emerging markets on an 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. basis through its active international equity managers. CalSTRS, at $127 billion, is the third-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 public school teachers 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, serving more than 755,000 members and their families. For more information, see www.calstrs.com. |
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