CalPERS' board approved hiring several firms for the $196.7 billion system's pre-approved list of international and U.S. enhanced index equity managers. AQR Capital Management and Quantitative Management Associates were hired for enhanced international indexed equity; Acadian Asset Management for active international equity; and T. Rowe Price for domestic equity. The board of the California Public Employees' Retirement System approved the use of annual contract reviews for managers in the pool.
The board renewed contracts for six active domestic equity managers and seven domestic enhanced index equity managers for one year each. Among active managers, The Boston Co. Asset Management runs $799.8 million; Pzena Investment Management, $758.9 million; AllianceBernstein, $644.7 million; JPMorgan Investment Management, $566.2 million; Franklin Advisors, $560.6 million; and Geewax Terker, $493.2 million. Among enhanced managers, INTECH runs $905.9 million; Quantitative Management, $891.7 million; Franklin Portfolio Associates, $889.3 million; WAMCO, $559.7 million; Smith Breeden, $553.5 million; Goldman Sachs, $441.7 million; and Atlantic Asset Management, $328.5 million. Christianna Wood, senior investment officer, said staff would consider some steps to improve performance among enhanced index managers, including "relaxing the long-only constraint."
Among international equity managers, staff renewed contracts for one year with State Street Global Advisors, which runs $25.9 billion in passive international equities. Other contract renewals included: active international managers Grantham, Mayo, van Otterloo, $939.7 million; Baillie Gifford, $753.4 million, Arrowstreet Capital, $748.6 million; and Robeco, $409.3 million; active European managers AXA Rosenberg, $952.5 million, and Capital Guardian, $534.6 million; active Pacific Basin manager Nomura, $830.7 million; and active emerging markets managers Dimensional Fund Advisors, $1.5 billion; AllianceBernstein, $1.4 billion; and Genesis Asset Managers, $1.2 billion.
Separately, CalPERS staff said they plan to meet before year's end with officials of ABB Ltd., Royal Dutch Shell Group, Alcatel, Siemens and Total SA to obtain more information about their activities in Sudan, said Mark Anson, CIO. The system owns a combined $1.7 billion in stock of the five companies. CalPERS also formed a coalition with the California State Teachers' Retirement System, Illinois State Board of Investment, New York state Comptroller Alan Hevesi and Connecticut state Treasurer Denise Nappier to identify and consider all investment options with companies that support or condone human rights violations in Sudan's Darfur region. The California Assembly passed a resolution earlier this month that encouraged CalPERS and the $133 billion CalSTRS to avoid investing in companies with business ties to Sudan.