US - The $97.7bn California State Teachers' Retirement System (CalSTRS) has picked four firms for its first entry into high yield.
The four selected managers are Hartford Investment Management Company, MW Post, Seix Investment Advisor's, and Shenkman Capital Management. CalSTRS has allocated 5% of its $30.1bn fixed income portfolio to high yield, leaving the selected managers to split $1.5bn between them.
A spokesman for the fund said that it was currently in negotiations with the selected managers, and that once they were concluded, amounts would be allocated to the managers. The spokesperson added that the mandates will be funded by the end of the second quarter. Additionally, the fund has placed Capital Guardian Trust and Mackay Shields on the reserve list for mandates.
Earlier this month, the fund appointed a new CEO, six months after the incumbent, James Mosman, announced that he would be leaving the fund. Mosman is leaving CalSTRS to join the US-based National Council on Teacher Retirement as its new executive director.
Jack Ehnes, vice president for corporate affairs at Great-West Life & Annuity Insurance, will join the fund as its new CEO on February 4. At Great-West Ehnes served as trustee/plan administrator for the firm's employees' defined benefit and defined contribution plans.
By Geoffrey Ho
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