CalPERS will interview two finalists in its search for a general consultant at its April 18 investment committee meeting: incumbent Wilshire and R.V. Kuhns. A third finalist, Ennis Knupp, withdrew from consideration, according to a staff memo to the board. David Russell, principal at Ennis Knupp, did not return a call by press time for comment. Wilshire's annual fee would be $2.864 million, while R.V. Kuhns proposed an annual fixed fee of $2.35 million plus additional charges for specialized investments such as hedge funds and corporate governance funds. The board of the $183.6 billion California Public Employees' Retirement System, Sacramento, will select a firm at the meeting.
CalPERS staff also is seeking some flexibility for its internally managed currency overlay program. The proposal would allow staff to apply a 20% to 30% overlay to the system's $41 billion in international equities, instead of the flat 25% hedge now applied.
Separately, CalPERS 457 Deferred Compensation Program plans to add an automatic rebalancing feature, probably within the next six months, according to Martin Walters, program manager for the $420 million plan. Fund officials are considering expanding the plan's investment options to offer active domestic small-cap, midcap and large-cap value equity options. If the program does add the value options, Mr. Walters said it will use managers that already have a relationship with CalPERS.
