CalPERS will issue an RFP for at least one non-investment-grade bond and leveraged loan manager. The amount to be managed has not been determined. Currently, CalPERS has $1.2 billion in non-investment-grade debt, with $633 million externally managed. The decision was made by the $250.4 billion California Public Employees’ Retirement System, Sacramento, at a board meeting Monday, after trustees in June increased the target for these assets to 15% from 10% of the $59 billion internally managed domestic fixed-income portfolio. Staff expects to issue the RFP on Feb. 1, said spokesman Clark McKinley.
Staff also will create a pre-approved list of up to three general pension consultants for the fund’s supplemental income plans, which have a combined $1.1 billion in assets, said Geraldine Jimenez, division chief of the SIP. One consultant will help CalPERS develop its own target-date funds. The RFP is scheduled to be issued Thursday. The existing consultants are Pension Consulting Alliance, R.V. Kuhns and Strategic Investment Solutions, said Ms. Jimenez.
The board also hired Evergreen Investments, Putnam Investments and Boston Co. for a pre-approved list of active smidcap growth equity managers for the supplemental income plans, and Systematic Financial Management and Boston Co. for a pre-approved list of active smidcap value equity managers, both new additional for the supplemental plans. CalPERS issued an RFP on June 7.
In addition, trustees renewed the contracts of Pareto Partners and State Street Global Advisors, the pension fund’s external currency overlay managers, for one year. Pareto has overlaid $4.17 billion and SSgA, $2.6 billion.
Finally, preliminary election results show Henry Jones, a retired chief financial officer with the Los Angeles Unified School District, won the retiree seat on CalPERS’ 13-member board of administration. He is replacing Robert Carlson, who is retiring in January after 36 years on the board.
