CalPERS gives external managers one more year, pending review

CalPERS has extended the mandates of its external global equities managers by one year to enable staff to complete the asset class review, which will produce a recommendation about the role of external managers in the portfolio.

The $201.3 billion fund also extended the mandates of its nine external global fixed income managers, with all contracts having a one-year renewable extensions without termination dates, contingent upon investment committee approval. CalPERS can terminate these agreements upon 30 days notice.

In a letter to chief investment officer Joe Dear, consultant Andrew Junkin, managing director of Wilshire Associates, recommended an extension of the contracts in light of the overarching review of global equities so that no unnecessary structural changes or transactions costs would be forced onto the portfolio.

The review of global equities includes staff moving towards a more holistic implementation of the portfolio. At the December investment committee meeting, Wilshire and CalPERS staff are due to provide an update of the project, plus more specific recommendations about the role of external managers in the portfolio.

CalPERS’ external managers are:

Domestic equities

• AllianceBernstein
• Analytical Investors
• The Boston Company
• First Quadrant
• Golden Capital Management
• INTECH Investment Management
• JP Morgan Investment Management
• Marvin & Palmer Associates
• Pzena Investment Management
• Quantitative Management Associates
• T Rowe Price
• Turner Investment Partners

International equities

• Alliance Bernstein
• Arrowstreet Capital
• AXA Rosenberg
• Baillie Gifford Overseas
• Grantham, Mayo Van Otterloo
• Nomura Asset Management
• Pyramis Global Advisors

Emerging markets equities

• AllianceBernstein
• Batterymarch Financial Management
• Dimensional Fund Advisors
• Genesis Investment Management
• Lazard Asset Management
• Pictet Asset Management

Environmental Managers

• AXA Rosenberg
• Global Currents Investment Management
• New Amsterdam Partners
• State Street Global – US
• State Street Global – International

Emerging manager fund of funds

• FIS Group
• Leading Edge Investment Advisors