CalPERS today voted to move $13.3 billion - the remainder of its $27 billion passive international equity portfolio - to internal management. The entire external portfolio is run by State Street Global Advisors. The $205.8 billion California Public Employees' Retirement System, Sacramento, expects to save $1.3 million in annual fees from the change. With the move, CalPERS staff will internally manage 74% of the system's $131 billion global equities portfolio.
CalPERS also selected 16 external managers to be included in pre-approved lists of firms to run active domestic growth equities, international fixed income and real estate equity securities. The equity managers are Goldman Sachs Asset Management, Jacobs Levy Equity Management, Marvin & Palmer, Turner Investment Partners and INTECH; the fixed-income managers are AllianceBernstein, BlackRock, Brandywine Asset Management, Mondrian Investment Partners, Morgan Stanley Investment Management and PIMCO; and the real estate managers are Citigroup Property Investors, European Investors, Morgan Stanley Investment Management, Presima and RREEF America. The fund will assign most of its $1 billion internally managed passive international real estate securities portfolio to the managers on the newly approved list, although details have not yet been approved.
Separately, Wilshire Associates will propose that Michael Schlachter, managing director, and Andrew Junkin, vice president, will be the primary contacts for the firm's consulting account with CalPERS, according to sources. Wilshire has not sent a formal proposal to the CalPERS board, which must approve the changes. Rosalind Hewsenian, who was a principal consultant to CalPERS along with Mr. Schlachter, announced she will leave Wilshire at the end of August.
