The board of the $99.6 billion California Public Employees' Retirement System, Sacramento, extended for one year the contracts for 10 real estate money managers. The contract extensions included four firms that had been put on a termination list by the fund's real estate consultant and staff.
In an unusual move, the board turned over to staff the authority to hire and fire real estate managers once a strategic plan for the fund's $5.7 billion real estate portfolio has been approved by the board. That authority will be held primarily by David Gilbert, CalPERS' new senior real estate investment officer.
Mr. Gilbert will craft the strategic plan that could restructure the portfolio. The board retained the authority to hire or fire its real estate consultant.