Funding will come from reducing the systems current $18.2 billion passive international equity portfolio managed by State Street Global Advisors. However, the $147 billion California Public Employees Retirement System, Sacramento, will not fund the emerging markets accounts until it concludes its review of permissible country guidelines, which have been expanded to include financial transparency and labor standards. Fund officials expect to adopt country rankings in February.
Meanwhile, SSgAs portfolio is up for bid and staff is expected to recommend a manager at the investment committees March 18 meeting. Wilshire Associates is the consultant on both portfolios.