US - The California Public Employees' Retirement System (CalPERS) plans to dole out $2bn to up to three strategic partners to manage multi-asset class mandates.
The managers will have discretion to invest in a number of different asset classes as long as they stay within a certain risk parameter. Officials at the $222bn pension fund expect to hire two-three managers.
Farouki Majeed (pictured), CalPERS senior investment officer, asset allocation and risk management said: "The objectives of the strategic partnership are to generate excess returns and help us develop more dynamic asset allocation and risk-budgeting capabilities."
CalPERS will seek managers based on a set of minimum qualifications and will select finalists using a scoring and ranking system. Details on the request for proposal can be found on CalPERS Investment Proposal page. The RFP will go live today and will end on 21 October.
Separately, the fund making its first hedge fund seed investment, commiting $100m to Breton Hill Capital, a Toronto-based global macro hedge fund.
The investment is part of CalPERS $5.3bn absolute return strategies programme. CalPERS already has approximately $500m invested with customized hedge funds focusing on emerging managers.
"The Breton Hill investment continues our efforts to source best-in-class investment talent," said Joseph Dear, CalPERS chief investment officer.
"Our agreement creates a strong alignment of interests between CalPERS and Breton Hill, and our seed investment will add value to our portfolio as Breton Hill successfully executes its strategy."
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