|[December 03, 2013]
CalSTRS Announces Investment Consultants Selection
WEST SACRAMENTO, Calif. --(Business Wire)--
The California State Teachers' Retirement System (CalSTRS) today
announced it has selected Meketa Investment Group and Pension Consulting
Alliance as its general consultants to the Investment Committee.
Meketa Investment Group and Pension Consulting Alliance (PCA) will
divide the consultant duties. The three-year contract will have an
option of two, one-year, extensions and will be effective by July 1,
For 25 years, PCA has been the sole general consultant to the Investment
Committee. PCA is CalSTRS' second investment consultant ever, since the
investment branch became independent of CalPERS in 1983. CalSTRS' first
investment consultant, Wilshire Associates, hired Allen Emkin as lead
consultant for the CalSTRS account. PCA, which Emkin founded, became the
consultant to the Investment Committee in 1988.
Meketa Investment Group was founded as an investment partnership in
1974. In 1978, the firm was incorporated under Massachusetts law and
registered with the Securities and Exchange Commision as an investment
advisor. It began by providing investment strategy and advising to
Harvard Management Company - the endowment at Harvard University. Today
the Meketa Investment Group consults for 90 clients with combined assets
of more than $600 billion.
The consultants will work for the Investment Committee and with CalSTRS'
"CalSTRS' quarter-century long relationship with PCA has been a fruitful
one and we look forward to continuing it," said CalSTRS Investment
Committee Chairman Harry Keiley. "However, we feel the growing
complexity of the portfolio and the challenges of today's investment
environment require the talents of two firms and Meketa and PCA rose to
the top of a very competitive group. We want to build on the fine
guidance received in recovering from the devastating losses suffered
during the financial crisis to position CalSTRS' investment fund for
long-term, future growth."
Meketa Investment Group and PCA were selected through a competitive
process due to the pending expiration of PCA's current contract, which
will expire June 30, 2014.
State Teachers' Retirement System, with a portfolio valued at $176
billion as of October 31, 2013, is the largest educator-only pension
fund in the world. CalSTRS administers a hybrid retirement system,
consisting of traditional defined benefit, cash balance and voluntary
defined contribution plans. CalSTRS also provides disability and
survivor benefits. For 100 years, CalSTRS has served California's public
school educators and their families, who today number 862,000 from the
state's 1,600 school districts, county offices of education and
community college districts.
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