CalPERS today adopted the investment protection principle guarding against conflicts of interests between analysts and investment bankers and requiring disclosure by money managers of client relationship and pay practices and brokerage commissions. In addition to applying the principles to active equity managers, the board of the $140 billion California Public Employees Retirement System, Sacramento, extended their application to the funds fixed-income managers. The board asked the staff to come back with an implementation plan that also addresses enforcement issues.
In addition, CalPERS board members today asked the staff to report on the status of federal law and proposed legislation concerning corporations that do business in states that support terrorist activities and possess weapons of mass destruction. The Global Security Risk Monitor, a database created by the Investor Research Responsibility Center and Conflict Security Advisory Group, listed 171 global companies that do business in the six identified terrorist states.