US - The Californian Public Employees' Retirement System (CalPERS) second manager development programme, a niche fund in the plan's portfolio (MDPII), will benefit from increased flexibility to enter emerging markets.
The $245bn pension fund said that MDPII previously only had access to long-only public equity, high-yield fixed income and emerging hedge fund of funds until this decision to expand investment horizons was taken by the board.
CalPERS board president, Rob Feckner commented: “These new options will help us to better achieve our goal of obtaining superior investment returns with new and emerging money managers, who typically don’t have the long-term track records or the assets of larger more established firms.”
The first manager development programme has been investing in emerging managers with assets under management of under $2bn for the past seven years. The MDPII was launched in 2006.
As of the end of last month, the funds’ combined assets totalled $1.8bn.
CalPERS also announced that investment officers were to receive greater flexibility under a new rebalancing program. With it comes the ability to shift capital more quickly across public equity, private equity, real estate and fixed income.
A separate account is to be created by the Asset Allocation Unit to hold all rebalancing trades allowing better measurement of the effectiveness of shifts among asset classes.
In other news CalPERS has voted to oppose state legislation forcing pension funds to divest from Iran, confirming a stroy in the May issue of Global Pensions.
Partner Insight: Members' evolving needs and expectations are driving changes in scheme administration. As the pensions landscape inevitably continues to change, how will your scheme's approach need to develop to keep pace?
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