US - CalSTRS, the giant $105bn California State Teachers' Retirement System, is looking for a custodian and record keeper for its $57m deferred compensation 403(B) plan.
The search closes on November 1, and the current 403(B) Voluntary Investment Program's (VIP) administrator, CitiStreet, has been invited to reapply for the position. The selected firm will provide record keeping and trust services to the VIP scheme, in addition to acting as custodian of the plan's records and assets.
Additionally, a spokesperson for the fund said that it had shortlisted 12 managers to run a $2-3bn high yield bond mandate. The spokesperson said that the CalSTRS investment committee is expected to approve the names on the shortlist when it meets on September 5, and that interviews with finalists would begin shortly after.
CalSTRS has made commitments to three private equity funds in August. The New Enterprise Associates 8A fund received $25m, whilst a secondary investment of $2m was made in the Thomas H Lee Equity Fund IV. The Morgan Stanley Real Estate Fund IV will receive $220m from CalSTRS.
403(b) refers to the section of the US Internal Revenue Code that entitles employees of eligible non-profit organisations to save for retirement by participating in a tax-deferred annuity program. Contributions are tax-deferred, and interest and earnings accumulate on a tax-deferred basis. Generally, people choose to divert a percentage of their salary to 403(B) plans, and in some cases, employers offer matching contributions.
By Geoffrey Ho
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