CalPERS staff makes housing program recommendations
SACRAMENTO, Calif. - Staff at the $144 billion California Public Employees' Retirement System recommended three managers to run $150 million in the fund's affordable multifamily housing program. Staff recommended allocating $50 million to a joint venture among Klein Financial Corp., Steadfast Properties and Development, and the Paramount Cos. that will target mixed-income, tax-exempt bond-financed projects. They also proposed allocating $70 million to Casden Properties to form a mixed-income housing-development fund. In addition, they recommended contingent approval to allocate $30 million to The Related Cos. of California, pending further research. PCA/E&Y Kenneth Leventhal assisted.
Separately, the staff also recommended one-year contract renewals for 11 of the pension fund's external money managers. The recommendations will be up for approval by the CalPERS investment committee at its Nov. 13 meeting.
Affected managers are: Dimensional Fund Advisors, which manages $1.3 billion in domestic small-cap passive equities; Baring Asset, Julius Baer Investment, Merrill Lynch Asset and Rogge Global Partners, $1.1 billion each, international fixed-income; Bridgewater Associates and Wellington, $1 billion each, international bonds; and Western Asset, $525 million, international bonds. Also up for renewal are the program's three currency overlay managers: Pareto Partners, which runs $2.7 billion; Credit Suisse Asset, $1.6 billion; and State Street Global Advisors, $600 million.