California Public Employees' Retirement System trustees approved a new corporate governance plan for the 1999 proxy season that calls for establishing alliances with institutional investors in France, Germany, Japan and the United Kingdom; providing an expanded Web site on proxy information; developing cutting-edge issues to be included in proxies; and promoting corporate governance issues worldwide.
Separately, trustees approved a search for an external partner for its new $2 billion small-manager development program, said Robert Boldt, senior investment officer for public markets for the $133 billion fund.
Staff will interview partnership candidates, including Affiliated Manager Group; Progress Investment Management; State Street Global Advisors; Strategic Investment Partners; United Asset Management; Northern Trust Global Advisors; and Met West.
The program calls for CalPERS to find up to 12 superior small managers, give them assets to manage and make equity investments in them. The partner would manage the program on a day-to-day basis. Mr. Boldt estimated he will recommend a partner to trustees in March and begin the program in May.
Trustees also approved an active, internally run domestic equity investment program that could manage up to $1 billion for the $130 billion fund. CalPERS already internally manages passive and enhanced index funds. The funding will probably come from cash.
Also approved was a $75 million commitment to ABS Capital Partners III, which invests in health care, technology, communications, media and consumer, industrial growth and financial service companies. Funding will be from cash.
