Updated with corrections
CalPERS was 66% funded as of Dec. 31, down from 89% funded six months earlier, according to an agenda item for the systems March 16 investment committee meeting.
The last time the California Public Employees Retirement System, Sacramento, was fully funded was June 30, 2007, the end of its 2007 fiscal year.
At the meeting, the committee will consider a preapproved list of 12 general investment consultants to be used on an as-needed basis. The consultants were recommended by system staff following an RFP last fall.
Two consultants Cutter Associates and Rogerscasey are not current consultants to the $163.7 billion system. Firms advising CalPERS and on the new list are Brock Capital Group, Callan Associates, Le Plastrier Consulting Group, Meketa Investment Group, Mercer, Pacific Community Ventures, Pension Consulting Alliance, RV Kuhns, Strategic Investment Solutions and Wilshire Associates.
Also, the panel will consider consolidating the manager development program, in which the system takes stakes in emerging managers and emerging managers funds of funds, which would raise the maximum targets for the fund-of-funds program to 5% from 0.75%.
The committee will also consider rehiring International Fund Services, which administers CalPERS hedge fund program and delegating IFS performance monitoring to staff.
According to the agenda, the system also is beginning the asset allocation review of targets and ranges as directed by the investment committee in December. According to the timeline included in the agenda materials, the committee is scheduled to select an asset mix in May. As part of the review of allocation targets and ranges, system officials will consider adding allocations to cash and an opportunistic portfolio. Officials are also considering whether to keep absolute-return strategies as part of its 40% global equity allocation; currently 1.8% of the global equity allocation is targeted for absolute-return strategies, with the strategies actually making up 3.3% of the allocation as of Dec. 31. (The actual allocation to global equities was 18.6% of the total portfolio at year end.)