SACRAMENTO, Calif. - CalPERS expanded its list of financial market reform principles developed in response to the collapse of Enron Corp. and Global Crossing Ltd. The new principles include the following: board members must be "financially literate"; audit committees must meet at least quarterly and have their own resources, as well as full access to company books and records; a cap will be placed on non-auditing services for accounting firms; broader disclosure will be required of companies using forward equity contracts; and readability and disclosure of executive compensation must be improved.
Many of the principles require further research by staff at the $150 billion California Public Employees' Retirement System, Sacramento.
Also, CalPERS and Strategic Investment Group allocated an additional $100 million to be invested in Golden Capital Management's large-cap value and small-cap core strategies. Golden, which is part of the fund's manager development program, was allocated $200 million last December by the $150 billion California Public Employees' Retirement System, Sacramento.
Separately, State Street Global Advisors' contract to manage $17.7 billion in passive international assets was renewed, and Michael Flaherman and Sean Harrigan were re-elected to one-year terms as chairman and vice chairman of the investment committee, respectively.
CalPERS' investment committee also approved seven target managers for the fund's $4.1 billion domestic growth equity portfolio: Aeltus; Fifth Third Bank; Franklin Templeton Institutional; Goldman Sachs Asset Management; INVESCO; New Amsterdam Partners and TCW. Two to four of those firms will be presented as finalists at the investment committee's May meeting.