CalPERS picked Alliance Bernstein; Capital Guardian Trust; Dimensional Fund Advisors; and Genesis Asset Managers to run up to a total of $1 billion in active emerging market equities.
Funding will come from reducing the system’s 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, SSgA’s portfolio is up for bid and staff is expected to recommend a manager at the investment committee’s March 18 meeting. Wilshire Associates is the consultant on both portfolios.
