US - CalSTRS has awarded the three first fixed income contracts in its developing manager programme and established a pool of firms to supplement the line up.
Christopher J Ailman, CIO, CalSTRS, said: "These firms will help us find the emerging stars in fixed income and focus on the smaller firms that will add value to the teachers' retirement portfolio."
Ailman continued: "This strategy is part of our commitment to look for value everywhere we can find it to strengthen the financial security of our members and their families."
The California State Teachers' Retirement System (CalSTRS) said the firms would have fiduciary responsibility and focus on core plus and high yield strategies, including municipal and US housing based products.
The fund has targeted a 20% holding in fixed income; a fraction more than the current $32.7bn level.
In April the fund awarded US equities contracts to four firms in its emerging managers programme.
The $164bn fund said it classed any investment manager with less than $2bn in assets under management as 'developing'.
CalSTRS said managers interested in working with it should contact Clayton C Jue, president and CIO, Leading Edge on +1 415 217 7030.
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