CalPERS' investment committee plans to decide on Monday whether to create a second manager development program. The $166 billion California Public Employees' Retirement System, Sacramento, has an existing $2.5 billion manager development program with Progress Putnam Lovell and Strategic Investment Management that provides venture capital and investment funds to emerging managers in exchange for a minority equity stake in the firms. If the second program is approved, CalPERS would issue an RFP to create a "spring-fed pool" of new strategic advisers, which would be required to make a significant cash contribution and have an open investment period. In addition, the amount of capital CalPERS commits will be flexible; there was a set commitment in the original program. The program could also include hedge fund of funds. Consultant Wilshire Associates and CalPERS staff "have appreciated the concept of MDP but have been disappointed in its execution," according to a letter by Wilshire to the investment committee.
Separately, the committee will consider whether to issue an RFP for at least one real estate consultant; current consultant PCA can rebid, said Brad Pacheco, CalPERS spokesman. Also, the system will issue an RFP for a primary pension consultant; Wilshire's contract expires June 30, 2005. Wilshire can rebid, Mr. Pacheco said. If the real estate consultant search is approved, both RFPs would be issued Oct. 25; real estate consultant proposals would be due Dec. 3, and pension consultant proposals would be due Dec. 17. Finalist interviews and selections for both RFPs would be scheduled for April 18.
