CalPERS today hired seven firms for a new pre-approved list of developed market equity managers: AXA Rosenberg Investment Management; Batterymarch Financial Management; Fidelity Management Trust; Goldman Sachs Asset Management; PanAgora Asset Management; State Street Global Advisors; and Boston Co. The board of the $210 billion California Public Employees' Retirement System, Sacramento, also approved creating a list of pre-approved emerging markets equities managers. Those managers are: Batterymarch; Lazard Asset Management; Pictet Asset Management; and Robeco Institutional Asset Management. Mary Cottrill, the system's senior portfolio manager, said CalPERS will likely fund one or more emerging markets managers soon.
In addition, the board gave the staff a green light to proceed with an internally managed active currency overlay strategy that will initially run $100 million.
The system's board also wants the California Legislature to indemnify the pension fund against losses should lawmakers pass a bill requiring CalPERS and the $145 billion California State Teachers' Retirement System, both in Sacramento, to divest themselves of securities of companies with ties to Sudan. Currently, the bill would indemnify only board members and officers. The CalPERS board today approved a position supporting constructive engagement with portfolio companies doing business in Sudan.
Board members said the fund could not afford to incur nearly $1 billion in losses, as it did when it divested itself of South Africa-related securities in the 1980s.