CalPERS will issue an RFP for a strategic partner to originate, vet and invest alongside a new $5 billion credit-enhancement program. The program aims to generate about 35 basis points a year in income by lending the funds AAA credit rating to municipalities, surpassing returns and bearing less risk than securities lending. The investment committee of the $134 billion California Public Employees Retirement System, Sacramento, yesterday approved startup of the program. Details about the RFP were not available at press time.
Separately, the investment committee also approved a proposal allowing some of its core real estate managers to invest in Canadian and Mexican properties. The committee also endorsed a proposal to sell an undisclosed stake in its $900 million retail mall portfolio to Miller Capital Advisory, the portfolios manager, to better align the managers interests with those of the system.