US – The California Public Employees' Retirement System is looking to set up a “spring-fed pool” for international fixed income managers.
“Staff requests the approval to issue a Request for Proposal (RFP) with a ‘Spring-Fed Pool’ feature for active international fixed income managers,” an agenda item for CalPERS’ investment committee meeting states. The move follows a recommendation from consulting firm Wilshire Associates.
“Issuing an RFP for active fixed income managers is the next step in completing the Investment Committee’s objective of capturing risk-controlled excess returns in a more effective manner,” the note says.
It started its international fixed income programme in 1989 to provide diversification and “achieve efficient frontier objectives”. As at the end of 2005 the assets were around $5.38bn.
It also notes that the universe of managers in the field is “quite compact”.
Separately, State Street Corp. has announced that it has been reappointed by the fund to provide investment services for more e than $200bn in assets. Financial terms of the deal were not disclosed.
"State Street is uniquely positioned to handle the complexity of our investment operations,” said Investment Committee chair Charles Valdes.
“We are confident that the financial future of our members and retirees rests in good hands."