CalPERS pulled more than $7 billion from its external domestic and international equity and fixed-income managers as the $248.2 billion system moved more assets to internal management.
BGI alone had $1.3 billion taken from its international Alpha Tilts portfolio, reducing it to $3.5 million, and $1.1 billion taken from its Russell 1000 Alpha Tilts portfolio, leaving it with $1.9 million, according to data posted on the California Public Employees Retirement Systems website. Lance Berg, BGI spokesman, declined to comment.
More than $1 billion was yanked from Franklin Portfolio Associates domestic enhanced equity strategy, reducing its allocation to $1.6 million. Oliver Buckley, Franklin CIO, and Mike Dunn, Franklin spokesman, could not be reached for comment. Goldman Sachs Asset Management had nearly $400 million removed from its small-cap enhanced index portfolio, leaving it with a mere $603,866. Spokeswoman Andrea Raphael declined to comment.
Active domestic equity managers Geewax Terker lost $542 million while Jacobs Levy Equity Management had $509 million removed from its portfolio. Geewax was left with $684,872 and Jacobs Levy, $453,440. John Geewax, CIO and partner, and Bruce Jacobs, principal and co-CIO at Jacobs Levy did not return calls seeking comment.
Among international managers, Capital Guardian Trusts international equity portfolio lost $680 million, reducing it to $21 million, and Robeco USA lost $613 million, leaving the portfolio with $1.2 million. Neither CapGuardian spokesman Chuck Freadhoff nor Robeco spokesman Scott Sunshine returned calls for comment.
The shifts were part of the global equity restructure that impacts almost all portions of the program. The assets are being redeployed all over the spectrum from external managers to internal portfolios to transition accounts, said Clark McKinley, CalPERS spokesman. CalPERS moved most of the assets in-house, adding $3.7 billion of the assets to its domestic equity transition fund, while $2.6 billion was added to its international equity transition pool.
Also, a total of about $1.3 billion was pulled from six fixed-income managers. WAMCO lost $340 million; Rogge Global Partners, $267 million; PIMCO, $244 million; Mondrian Investment Partners, $192 million; Brandywine Asset Management, $188 million; and AllianceBernstein, $99 million. The changes are a result of CalPERS reducing its overall allocation to fixed income, said Eric Busay, global fixed-income portfolio manager at the pension fund.