GLOBAL – California teaching pension fund CalSTRS has picked five asset managers to run around $3bn (€2.5bn) of emerging markets assets.
The California State Teachers' Retirement System said it has selected Baillie Gifford, Lazard Asset Management, Mondrian, Templeton and T. Rowe Price to manage its new active emerging markets program. It has chosen an unrestricted investment universe for emerging market investments.
“The managers will invest about 10% of CalSTRS' international equity portfolio, approximately $3bn, in emerging markets,” the $133bn fund said.
The fund said the managers were selected through a competitive process and will have full discretion to manage their allocation. The benchmark is the MSCI Emerging Markets Free ex-Tobacco Index.
CalSTRS currently has investments in emerging markets on an opportunistic basis through its active international equity managers.
"The response to this process was tremendous and we are very excited with the quality and experience of the firms selected,” said global equities director Elleen Okada.
She said the managers would allow the fund to capitalize on “a multitude of niche investment opportunities in the international market place”.
"The emerging markets program was carefully designed to achieve the best return on our members' funds while mitigating the risks associated with investing in this market."
Elsewhere, JP Morgan Worldwide Securities arm said it has hired former Bank of New York executive William Stanton.
It said: he would run the team that will be responsible for selling a full range of fund services and related products such as fund accounting, fund administration and financial reporting.
No comments yet