CalPERS Investment Committee approved the plan that includes establishing a pool of consultants that specialize in diversity in the investment industry, and compiling a database of emerging investment managers and brokers. The pension fund will also move forward on a planned conference on the topic on April 24-25 in San Jose, California.
"Diversification among our investment managers will provide a sustainable competitive advantage and ensure that we remain on the cutting edge of innovation in the investment arena," said Rob Feckner, President of CalPERS Board. "We think there are opportunities created from the fundamental demographic shifts occurring at the state and national levels."
CalPERS expects to launch its search for consultants in the new year and have a pool established by March or April 2006. It is already working with the California State Teacher's Retirement System (CalSTRS) to develop a universe of emerging investment firms that can be accessed by each fund for future business opportunities, and will partner with CalSTRS to host the spring conference.
"This is an important new investment frontier for us," said Charles P. Valdes, Chair of CalPERS Investment Committee. "We need to take advantage of all the ideas and skills in the investment industry."
In recent years, CalPERS has increased its investments in emerging markets. It has more than $4.5 billion invested or committed for investment in underserved California markets.
For example, CalPERS has $475 million invested with 10 private equity firms that target investments in underserved California markets. It also has more than $2 billion committed to an investment program that emphasizes urban redevelopment and residential and mixed-use investments in California.
For registration information about the CalPERS/CalSTRS diversity conference, interested parties can email contact information to MaryAnn Burford .
CalPERS is the nation’s largest public pension fund with assets totaling more than $200 billion. The System provides retirement and health benefits to more than 1.4 million State and local public employees and their families. For more on CalPERS, visit www.calpers.ca.gov.
