CalPERS on Monday voted to renew its five-year contract with general consultant Wilshire Associates, pending negotiations over fees.
Selection came after the board of the $209.3 billion California Public Employees’ Retirement System, Sacramento, conducted a 30-minute public interview with Wilshire and the other finalist, Rogerscasey.
A formal contract still has to be negotiated by the board and Wilshire before its current contract expires on June 30. CalPERS board members made it clear that the new contract would also be subject to Wilshire lowering its proposed fee.
Wilshire proposed a fee of $3.23 million for each of the five years of the new contract, up from its current annual fee of $2.864 million.
Rogerscasey’s bid was substantially lower, proposing a $1.9 million annual fee for the five years of the contract.
However, Wilshire received a higher overall score than Rogerscasey from board members who interviewed representatives of the two firms in a public session.
During the interview process, Wilshire emphasized its asset allocation formula while Rogerscasey emphasized its expertise in global strategies.