CalPERS' equity managers are hobbling the $100 billion pension fund's otherwise superior investment performance.
At least seven of 19 external active equity money managers failed to meet the California Public Employees' Retirement System's minimum benchmarks or performance objectives, or both, in recent years.
A report from CalPERS' consultant, Wilshire Associates, reveals domestic equity managers RCM Capital Management, State Street Global Advisors, Spare Kaplan Bischel & Associates and Valenzuela Capital Management underperformed one or more minimum benchmarks in recent years.
In addition, three international equity managers - Morgan Grenfell, Oechsle International Advisors and Schroder Capital Management International - have also underperformed their performance objectives in recent periods, according to Wilshire figures.
If fund officials decide against issuing RFPs for domestic equity managers, Wilshire would recommend the contracts for the four existing managers expire.