CalPERS’ external managers will be required to disclose any fees they paid to placement agents to help them obtain business from the $196.6 billion system under new disclosure provisions approved today by the system’s investment committee.
Managers that knowingly gave inaccurate information to the California Public Employees’ Retirement System, Sacramento, would be subject to termination and be required either to repay CalPERS the fees paid to the agent or the manager advisory fees that CalPERS paid the managers, whichever is larger.
The new policy would apply to all new CalPERS contracts but not existing ones.
The tougher disclosure policy comes amid an investigation into the payment of tens of millions of dollars of placement fees by investment advisers to help win CalPERS contracts.
In other action, the board approved an RFP that is expected to be issued the week of Nov. 23 for a general investment consultant. The contract of current consultant Wilshire Associates expires June 30; the firm can rebid.