CalPERS is searching for three to five high-yield bond managers to run a total of $1 billion to $2 billion. In March, the $160 billion California Public Employees’ Retirement System, Sacramento, decided to double its maximum policy exposure to high-yield bonds to 10% of domestic fixed income, and to move into lower-quality credits. CalPERS internally managed $557 million in higher quality high-yield bonds, as of Dec. 31, well below its maximum.
CalPERS already is searching databases run by InvestorForce and Wilshire Associates; managers not in those databases also are encouraged to respond.
Deadline for completing questionnaires is June 22. CalPERS expects to hold finals in October.
