California Public Employees' Retirement System, Sacramento, approved the beginning of what will be $1 billion to $1.5 billion in commitments to alternative investment partnerships. Approved were: $200 million for Active Value Fund Managers; $75 million for Exxel Capital Partners V; $25 million to Technology Partners Fund VI; and $25 million to Technology Ventures II.
The selections were made under a plan that calls for investing in 10 to 15 partnerships over the next six months.
CalPERS officials also picked RREEF and LaSalle Advisors as the fund's industrial property managers. RREEF will manage $495 million of properties in the West and Northwest and LaSalle will manage $312 million in properties in the East. Both funds will co-invest with the $124 billion system - $10 million for RREEF and $9 million for LaSalle.
The board also allocated up to $235 million to four private equity managers and one real estate manager. Allocations, on which Cambridge assisted, are: up to $100 million to Thomas H. Lee Equity Fund IV and up to $50 million each to Oaktree Capital Management Opportunities Fund II and Summit Ventures V. The fund approved a venture capital allocation of $10 million for Fairview Capital II; specialty consultant Hamilton Lee assisted.
In real estate, the board allocated $25 million to Berwind Property Group Fund IV; the Townsend Group assisted.
Allocations are subject to contract negotiations and will be funded from cash.
KLH Industries Inc., Clinton, Miss., selected Principal Financial Group as administrator and investment manager for its new 401(k) plan. Principal will provide nine investment choices. KLH's new plan is expected to have annual deposits of about $1 million.
Greenalls Group plc Pension & Life Assurance Scheme, Warrington, England, picked Schroder Investment to manage a £70 million (U.S.$114 million) global balanced portfolio, said David Jack, group pensions manager. The portfolio had been managed by Gartmore Investment, which was dropped because of performance concerns. A spokeswoman for Gartmore confirmed the underperformance. Watson Wyatt Worldwide assisted.