CalPERS will renew the contracts of currency overlay managers Pareto Partners and SSgA for one year each, if the board approves the staffs recommendation, according to an agenda item for the systems Dec. 17 board meeting. As of Sept. 30, Pareto overlaid about $4.17 billion of the funds international equity assets, and SSgA, $2.6 billion. Both managers anticipated the strengthening of foreign currencies against the U.S. dollar and were able to bring in returns as well as control currency risk, the agenda said.
Separately, the fund committed $1 billion to Apollo Investment Fund VII, and $25 million to Audax Credit Opportunities Fund. It also invested $140 million in the Ares/CalPERS CLO Vehicle, which targets senior debt securities in a leveraged vehicle supported by long-term financing.
Separately, the $259.5 billion California Public Employees Retirement System, Sacramento, had a 3% return on investments for the quarter ended Sept. 30, matching its customized index return, according to a quarterly review by general consultant Wilshire Associates. It had a 17.1% return for the year and a compound annualized 15.1% for the three years ended Sept. 30, compared with benchmark returns of 16.1% and 14%, respectively. Private equity and real estate provided the strongest returns for the quarter at 11.5% and 4.3%, respectively.