CalPERS' investment committee on Monday approved renewal of 24 managers in its global equity program for one year through Dec. 31, 2011.
The $216.4 billion California Public Employees' Retirement System, Sacramento, rehired domestic equity managers Boston Co. Asset Management, First Quadrant, Golden Capital Management, J.P. Morgan Investment Management, Marvin & Palmer Associates, Pzena Investment Management, T. Rowe Price and Turner Investment Partners.
Also rehired were emerging market equity managers AllianceBernstein, Batterymarch Financial Management, Dimensional Fund Advisors, Genesis Investment Management, Lazarus Investment and Pictet Asset Management; environmental managers New Amsterdam Partners, State Street Global Advisors and Global Currents Investment Management; and emerging manager funds of funds FIS Group and Leading Edge Investment Advisors.
The system allocates 49.8% of total assets to the global equity portfolio, making it CalPERS' largest asset class.
Committee members discussed why underperforming managers were being renewed. Eric Baggesen, senior investment officer for global equity, responded that if they continued to underperform, they likely wouldn't be managing CalPERS' money next year.
Mr. Baggesen said CalPERS isn't afraid to terminate underperforming managers, noting that 19 low-performing external managers had been terminated since 2007, but he added that though investment staff monitors managers closely, system officials are careful not to make major alignments in the portfolio in a short period of time.