CalPERS on Friday issued an RFP for two or three money managers to serve as strategic partners to run a total of $1 billion to $2 billion in a multiasset-class portfolio and provide insights and analytics on asset allocation and portfolio construction decisions.
The managers will have discretion to invest in and move assets across a range of asset classes.
The benchmark is expected to be a composite of public equity, fixed income, real estate investment trusts and commodities indexes, according to the RFP. Selected managers will also provide CalPERS staff with information on benchmark-relative positions, potential investment opportunities, and advise on various types of investment projects.
“The external partners will have discretion to invest in and move assets across a range of investments in the CalPERS portfolio, within a risk framework,” Farouki Majeed, senior investment officer, asset allocation and risk management, said in a news release.
The program's objective is to generate excess returns as well as to develop “more dynamic asset allocation and risk-budgeting capabilities,” Mr. Majeed stated.
The RFP is on the website of the $223.8 billion California Public Employees' Retirement System, Sacramento. Responses are due Oct. 21, and due diligence with prospective finalists expected in December or January. A selection date has not yet been determined, according to the RFP.