CalPERS staff proposed issuing an RFP for a "spring-fed pool" of enhanced index managers to manage an initial allocation of $6 billion in domestic equities. The long-awaited proposal, first tipped in June, would ask the investment committee of the $154 billion California Public Employees' Retirement System, Sacramento, to approve the entire set of recommended managers.
If approved at the Nov. 17 investment committee meeting, CalPERS will target enhanced index managers that use controlled risk strategies and enhanced cash strategies. CalPERS' and Wilshire Associates' databases suggest there are 51 domestic enhanced index managers with at least three-year track records as of June 30.
Funding would come from CalPERS' domestic equity managers and its internally managed index fund; a Wilshire analysis suggests $3 billion be taken from each.