SACRAMENTO, Calif. — The board of CalPERS is making it easier for the giant pension fund to hire and fire managers — and is moving some of the process out of the public eye.
The change shifts more authority to staff and away from the board, while eliminating the watch list for managers with weak performance, personnel turnover or organizational changes.
In addition, publicly disclosed data will be limited to consultant Wilshire Associates Inc.'s quarterly report to the board on manager performance. Until now, fund officials posted such information on the investment committee's agenda, which is available on the fund's website. The changes affect CalPERS' external managers of publicly held securities.
And instead of hiring managers for specific assignments, the $166 billion California Public Employees' Retirement System, Sacramento, will create "spring-fed" pools of qualified domestic and international equity and fixed-income money management firms that could be tapped to run mandates on short notice. In the next two months, CalPERS' legal and investment staffs will explore ways to streamline the request-for-proposals process.
Meanwhile, firing decisions will be delegated to the staff.