SACRAMENTO, Calif. — CalPERS on Aug. 14 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 $210.7 billion California Public Employees' Retirement System 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.
Separately, CalPERS pulled out of MPM BioEquities, a long-short hedge fund focusing on small and midsize biotech stocks. The system redeemed $44.9 million from the hedge fund from April through June, according to records released this month by the pension fund.
Kurt von Emster, an MPM partner who oversees the $200 million biotech fund, said CalPERS — a seed capital investor when the fund was launched in 2001 — has been redeeming its position over the past three years because the pension fund no longer invests in specific sector hedge funds. CalPERS officials declined to provide further comment, according to spokesman Clark McKinley.