CalPERS’ staff has recommended seven global bond managers to run its $5.9 billion in global fixed-income assets, including three of the four incumbent managers.
Fiduciary Trust, manager of a $1.2 billion global bond portfolio, would not be retained under the recommendation. The firm’s performance has lagged its benchmark over the first quarter, one-, three-, five- and 10-year periods ended March 31, according to the $170 billion California Public Employees’ Retirement System, Sacramento. A Fiduciary Trust spokesman declined to comment.
New global bond managers to be considered at Monday’s investment committee meeting are Rogge Global Partners, Bridgewater Associates, Wellington Management and Western Asset Management. Portfolio sizes are not yet available. Managers to be retained are Julius Baer, which handles $1.6 billion; Merrill Lynch Asset Management International, $1.5 billion; and Baring Asset Management, $1.6 billion.
Separately, CalPERS staff also recommended four new active domestic equity managers to run an undisclosed amount of assets, replacing three value managers that were dropped or whose contracts have expired in recent months. Recommended are: J.P. Morgan; Sanford C. Bernstein; Osprey Partners; and Pzena.
Fidelity Management Trust and Pacific Financial Research were eliminated from the short list. Wilshire Associates is assisting.
