Staff for the California Public Employees' Retirement System, Sacramento, is recommending Morgan Grenfell Investment Services be placed on probation. The firm manages about $900 million in international equities for the fund.
The recommendation stems from staff concerns about risk control and management oversight in connection with incidents at MGIS' parent company, Morgan Grenfell Asset Management.
Board approval of the recommendation is expected today. The system has $100 billion in assets.
CalPERS staff also is developing contract wording that will require its external money managers to immediately notify the retirement system of irregularities related to the fund or any other client relationship.
