We describe the design of a runtime system for a fine-grained concurrent object-oriented (actor) language and its performance. The runtime system provides considerable flexibility to users; specifically, it supports location transparency, actor creation and dynamic placement, and migration. The runtime system includes an efficient distributed name server, a latency hiding scheme for remote actor creation, and a compiler-controlled intra-node scheduling mechanism for local messages and dynamic load balancing. Our preliminary evaluation results suggest that the efficiency that is lost by the greater flexibility of actors can be restored by an efficient runtime system which provides an open interface that can be used by a compiler to allow optimizations. On several standard algorithms, the performance results for our system are comparable to efficient C implementations.