CalPERS plans to issue an RFP for active emerging markets equity managers by the end of the year, said Christianna Wood, senior investment officer. The $181.9 billion California Public Employees' Retirement System, Sacramento, probably will seek to create a "spring-fed pool" from which it would select managers. Currently, CalPERS has more than $3 billion invested in active emerging markets equities. Dimensional Fund Advisors runs $848 million; AllianceBernstein, $818 million; and Genesis Asset Managers, $779 million. The remainder is spread among the system's other international equity managers.
Separately, CalPERS' board today renewed the contracts of all four of its external high-yield fixed-income managers for one year. The managers are: Nomura Asset Management, which runs $327 million; Highland Capital, $322 million; PIMCO, $313 million; and ING Ghent, $306 million.
CalPERS' board effectively approved doubling the size of private equity commitments that the staff can make without board approval. However, Charles Valdes, investment committee chairman, asked staff to return with a proposal to remove dollar limits on how much staff can allocate on its own but that would require improved communications to the board.
The investment committee also approved signing on to a 10-point action plan on climate risk, which encourages investing in clean technology and seeking greater disclosure from portfolio companies on their environmental policies.
The board gave its support to a California constitutional resolution that encourages portfolio companies not to support human rights abuses in Sudan.
Next month, CalPERS staff expects to name finalists for strategic advisers to its revamped manager development program.