California Public Employees' Retirement System investment committee has asked its staff for an update on the recent suspension and U.K. regulatory investigation of one of Morgan Grenfell's European portfolio managers. The committee also asked its staff to include a recommendation for its Nov. 18 meeting on whether to place Morgan Grenfell on probation.
Morgan Grenfell actively manages a large international equity portfolio for Sacramento-based CalPERS, which has $100 billion in assets. The size of the portfolio was not available.
Recently, Deutsche Morgan Grenfell dismissed the head of its asset management division and three other executives over alleged bogus values placed on stock held by three investment funds. Keith Percy, chief executive of Morgan Grenfell Asset Management, was among those dismissed in the case involving fund manager Peter Young.