US - California’s $205bn (€160bn) public pension giant CalPERS has named 16 managers for international fixed income, real estate equities and US global equities.
The California Public Employees’ Retirement System said it would place real estate asset with Citigroup Property Investors, European Investors Inc., Morgan Stanley Investment Management, Presima and RREEF America.
Among the six managers chosen for the pool of international fixed income are AllianceBernstein, BlackRock, Brandywine Asset Management, Mondrian Investment Partners Ltd., Morgan Stanley Investment Management
and Pacific Investment Management Company (PIMCO).
The US equity active growth sector will be managed by Goldman Sachs Asset Management, Jacobs Levy Equity Management, Marvin & Palmer Associates and Turner Investment Partners.
Janus’s INTECH will be and additional manager in the so-called “US Equity Indexing Growth Manager Spring-Fed Pool” with two products: Broad Large Capital Growth and Large Capital Growth.
“We evaluated many proposals from candidates, and these managers showed the most promise,” said scheme president Rob Feckner.
“We are counting on them for benchmark-beating returns, especially in international markets.”
In a move to expand its in-house management of international equity index assets, the fund as expected terminated State Street Global Advisors from a $13bn.
CalPERS’ own investment staff will now manage the entire international equity index portfolio, which totalled $27bn on June 30.
The fund hopes to save additional annual fees of $1.3m and to generate higher returns from internal management.
“Since we have successfully managed our domestic equity index portfolio internally for 20 years, it’s time to do the same on the international side”, said Feckner.
After the shift, $97.2bn - 74% - of CalPERS’ global equity assets will be managed internally. The changes follow the appointment of 11 active international equity managers in May.
None of the appointed managers was available for comment as they are waiting for confirmation of the contracts which should be given later this week.