CalPERS placed active international equity managers GE Asset and Mastholm on the $131 billion systems watchlist because of underperformance, according to a summary of the boards March 17 closed session. GE Asset runs $443 million; Mastholm manages $424 million. Officials at GE Asset and Mastholm could not be reached for comment by press time.
Also in closed session, the board of the California Public Employees Retirement System, Sacramento, approved a $200 million investment in a Japanese corporate governance fund run by Taiyo Fund Management, a joint venture between Taiyo Pacific Partners and Wilbur Ross. The deal, subject to certain terms and conditions, also would involve CalPERS buying a 20% stake in the manager.
Separately, staff recommended giving one year to emerging markets whose score falls below the 2.0 level needed to remain on CalPERS permissible markets list to provide additional data to the fund. Differing with consultant Wilshire Associates, staff would allow CalPERS external managers to change their weightings in securities from those countries during the "cure period. The item will be discussed at CalPERS investment committee meeting on April 14.