US – The 156 billion dollar California public employees pension fund Calpers has completed a 48 billion dollar securities lending auction of US equities, with the principal borrowers named as Credit Suisse First Boston, Deutsche Bank Securities and Lehman Brothers.
The auction took place via Old Mutual’s eSecLending arm last month. “Four major financial institutions submitted winning principal bids in the December 4 2002 auction, including Credit Suisse First Boston, Deutsche Bank Securities and Lehman Brothers,” said eSecLending in a statement. “Calpers also awarded assets to Metropolitan West Securities on an agency basis.”
Calpers did not disclose the allocation of the securities and did not immediately return calls and emails about the allocations. But one recipient, CSFB, said it had won a “significant” portion of the assets, without being more specific.
The California Public Employees’ Retirement System is the world’s largest pension fund.
"The success of the December US equity auction provides Calpers with a strong base for 2003," said Curtis Ishii, senior investment officer for Calpers’ global fixed income. "The winning bids have locked in excellent, dependable returns for our public employees and their families.
“The auction process has proven that it can consistently deliver premium returns to our beneficiaries and efficiently match our assets with multiple borrowers."
"This mandate highlights CSFB's continued commitment to its hedge fund and money management clients," said CSFB’s global head of prime banking Art Mbanefo. "Calpers’ pension fund members are the clear winners as they continue to realize superior value for their domestic equity assets.”
He added that this was the third consecutive year that CSFB has been awarded Calpers assets through the auction process.
“We are very pleased to have won such a significant portion of the assets and to continue our relationship with Calpers," Mbanefo added.