GLOBAL – The California Public Employees’ Retirement System (CalPERS), the $210bn (€163.8bn) public pensions giant, has “tentatively” selected contractors for asset allocation consulting, securities lending services and administration of supplemental savings programmes.
“We have decide to extend long-term relationships that we have had with consultants who have impressive track records,” said CalPERS board president Rob Feckner.
Towers Perrin, EFI Actuaries and Financial Engines Advisors have been selected to assist the CalPERS investment office prepare for the ’Asset/Liability Management Workshop’ – a strategic session to help the board fine-tune allocations of its system’s portfolio.
CalPERS investment committee chairman Charles Valdes said: “These consultants are strong players who understand the complexities of our pension fund’s assets and liabilities.”
CalPERS will also extend its current contracts with external securities lending managers Metropolitan West Securities and State Street Bank & Trust Company. According to a statement, the securities lending programme generated $129.4m in earnings for the year to end-March 2006.
The fund has also appointed global benefit provider CitiStreet (a 50:50 joint venture between State Street and Citigroup) to continue as the third-party administrator under a new contract.
It will provide record keeping, custody, investment products, marketing, education and customer service for CalPERS supplemental savings programmes, which has more than $800m in total assets.
According to CalPERS, the contracts are subject to successful negotiations of terms and conditions.
In May, IPE reported that CalPERS had selected 11 active international equity managers to manage portfolios in developed and emerging markets.
Seven firms were selected to manage assets in international developed markets, while four were selected for the pool of emerging markets.
The seven managers are Axa Rosenberg, Batterymarch Financial Management, Fidelity Management Trust Company, Goldman Sachs Asset Management, PanAgora Asset Management, State Street Global Advisors and The Boston Company.
The remaining four in charge of emerging markets include Batterymarch Financial Management, Lazard Asset Management, Pictet Asset Management and Robeco Institutional Asset Management.