CalPERS placed three of its external managers on probation and four others on its watch list last month.
Placed on probation were: Brown Capital Management, manager of a $922 million growth equity portfolio; Oppenheimer Capital, which runs a $948 million value equity portfolio; and Credit Suisse Asset Management, which overlays 10% of the California Public Employees Retirement Systems $26 billion in passive international equity assets.
Put on the $175 billion pension funds watch list were: Fiduciary Trust Co. International, which runs a $1.2 billion international fixed-income portfolio; Goldman Sachs Asset Management, which runs a $1.8 billion domestic equity portfolio; Nomura Asset Management U.S.A., manager of a $1.1 billion active Pacific Basin mandate; and Paribas Asset Management, which runs a $1.7 billion active European equity mandate.
Also, State Street Global Advisors, manager of a $26 billion passive international equity portfolio, was removed from the watch list.
Kaiser Aluminum & Chemical Corp., Houston, is conducting an asset allocation review. The $800 million plan has no plans to change managers or allocation, but conducts such reviews periodically, said Ross Hambly, retirement committee secretary. Frank Russell is assisting.