CalPERS staff recommended hiring five managers to run high-yield bond portfolios totaling $1 billion to $1.5 billion, as part of a planned expansion of the $147 billion pension funds investments in the sector. The managers are: Highland Capital Management; Shenkman Capital Management; ING Ghent Asset Management; PIMCO; and Nomura Securities. The hirings are subject to approval by the board of the California Public Employees Retirement System, Sacramento, next week.
In addition, staff and consultant Wilshire recommended seven finalists in its search for emerging market managers to run a total of $1 billion to $1.5 billion. Interviews with the investment committee will be held in January, with contracts to be negotiated in February. Recommended managers are: Bernstein Investment Management & Research; Capital Guardian; Grantham, Mayo, Van Otterloo; Foreign & Colonial Emerging Markets; Dimensional Fund Advisors; Rexiter Capital Management; and Genesis Asset Managers.