The investment committee of the California State Teachers’ Retirement System will review a request for proposals issuance at its January 8 board meeting, according to the pension fund’s investment committee meeting material. The contract of Meketa Investment Group Inc., the sole general investment consultant for CalSTRS since 2018, is set to expire on June 30.
If the consent action is approved, CalSTRS will issue a request for proposals for an investment consultant sometime this winter to start a new contract on July 1. Select finalists would be presented before the investment committee in March. The new contract will cover three years, five years or three years with two options of one year each, according to the meeting material.
“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 [to the scope of work],” according to the board meeting agenda.
The draft general consultant RFP includes a list of services expected to be provided by the consultant, such as manager search and selection, performance analysis, asset liability management studies and other fiduciary work.
Meketa was selected as co-consultant for CalSTRS in 2013 for general investment consulting services, with Pension Consulting Alliance LLC as the lead consultant. In 2018, CalSTRS made Meketa the sole consultant after issuing a new RFP, and in 2019, Meketa and PCA merged.
In separate board meeting material, CalSTRS noted that assets of the fund grew to $352.5 billion as of November 30, 2024. The fund allocates 41.2% of its portfolio to public equity, 15.3% to private equity, 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.
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Tags: California State Teachers’ Retirement System, CalSTRS, Investment Consultant, Meketa, RFP