CalPERS staff proposed boosting Relational Investors' allocation to $1 billion, a $188 million increase. The allocation has been steadily increased from an initial commitment of $200 million in June 1995. Relational, which is now targeting larger-cap companies, would comprise half of the $165 billion California Public Employees' Retirement System's corporate governance program if the increase is approved at the March 15 investment committee meeting.
Separately, CalPERS agreed to invest $85 million in Secured Capital Japan Real Estate Partners I, an opportunistic fund that will invest mostly in Japanese multifamily properties, along with select office and retail/mixed-use properties. It also committed $125 million each to buyout funds Silver Lake Partners II and First Reserve X.
Staff at the Sacramento-based system also recommended adopting ethical standards for external money managers and consultants, making compliance a prerequisite for doing business with the fund. The guidelines were proposed earlier this year by leading public fund officials, including California Treasurer Phil Angelides.