By Muskan Arora
The investment committee of the $352.5bn California State
Teachers’ Retirement System is set to review a request of proposals issuance at
its Jan 8th meeting, following the expiration of consultant Meketa’s
contract on June 30.
Meketa has been the sole consultant for the pension plan
since 2018.
If approved, CalSTRS will roll out a request for proposals
for an investment consultant to start with a new contract on July 1. Chosen finalists
will be presented before the investment committee in March.
The new contract will cover a flat three years, a flat five years, or five years comprised of a three-year contract with two one-year extension options, as stated in the meeting materials.
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“This item is placed on Consent if the Committee desires to move forward with the search and selection of the attached general investment consultant scope of work or can be pulled from Consent and discussed if the Committee desires a change,” as per the meeting materials.
The new consultant will be responsible for manager search
and selection, performance analysis, asset liability projects and other fiduciary
work.
In 2013, Meketa was chosen as a co-consultant for CalSTRS
for general investment consulting services with Pension Consulting Alliance as
the lead consultant. However, in 2018, Meketa took over as the sole consultant.
The pension plan allocates 41.2% to its public equity
sleeve, 15.3% to its private equity portfolio, 13.1% to real estate, 12% to
fixed income, 7.9% to risk mitigation strategies, 6.5% to inflation sensitive
assets, 2.1% to cash, 1.7% to collaborative strategies and 0.1% to strategic
overlay, as of November 30, 2024.
