CalPERS’ board today approved a pre-search RFP for a global custodian to determine the universe of banks capable of handling the fund’s assets, and it adopted criteria for the search. Current custodian State Street Bank’s contract expires June 30, 2001.
The $175 billion California Public Employees’ Retirement System’s selection criteria include a requirement that candidates have had overall custodial assets of at least $1 trillion for the past three years. Also, candidates must be able to handle all of Sacramento-based CalPERS’ current asset classes and those that might be added in the future.
The pre-search is expected to take three weeks; finalists interviews are not anticipated for about five months. CalPERS’ new chief investment officer, who could be selected as early as Thursday, will help choose the custodian.
In other action, the board ratified the investment committee’s decision to defer action on investments in developing nations until August. Two proposals had been submitted — one from staff and the other from Phil Angelides, state treasurer and CalPERS board member — on developing countries in which CalPERS should invest. Staff favors using solely economic criteria; Mr. Angelides wants CalPERS to select countries based on social and human rights considerations. The committee asked that CalPERS staff and Mr. Angelides’ staff work out a joint proposal.
