CalPERS terminated SSgAs investment options for two of its supplemental income plans, the $700 million CalPERS 457 Plan and the $20.8 million Supplemental Contributions Program, according to an agenda item for the systems Sept. 15 investment committee meeting.
Staff at the $232.1 billion California Public Employees Retirement System, Sacramento, will replace the SSgA Stable Fixed Income fund with the PIMCO Moderate Duration Stable Value fund. SSgAs Select Active International fund, an equity offering, will be replaced with the Pyramis International Select fund. CalPERS also added Boston Co. small and midcap growth and small and midcap value funds to the equity roster.
CalPERS replaced SSgAs risk-based funds and target retirement date funds with the pension funds relatively new in-house equivalents. The wide range of assets to be included is found in few existing asset allocation funds, according to a staff memo to the investment committee.
The changes will take effect Nov. 3 for the 457 plan and March 2, 2009, for the supplemental plan.
CalPERS spokesman Clark McKinley declined to comment on the reason for the change. SSgA spokeswoman Marie McGehee said: CalPERS is a longstanding client, and we continue to have a strong working relationship with them.
Separately, CalPERS invested a total of $921 million with four private equity funds in July, according to recently released documents on the pension funds website. Staff invested $300 million each with Carlyle Asia Partners III and the Riverstone/Carlyle Renewable and Alternative Energy Fund II; $221 million to the Avenue Europe Special Situations fund; and $100 million in the GSO Capital Opportunities Fund.