The largest US pension plan would need to sell its investments in two private prison companies under legislation sponsored by California lawmaker Rob Bonta.
A report found CalPERS missed nearly $3.6 billion in investment opportunities from 2000 decision, but other divestments have worked in its favor.
The former CalPERS CIO will oversee six investment team leaders and bolster the investment bank’s relationships with its asset owner clients.
But the court might rule on a narrower issue, continuing the controversy over whether the benefits promised employees are fixed for life.
CalPERS officials hope ESG revisions will add alpha to the pension system’s $178.6 billion global equity portfolio.
The more cautious approach to direct private equity investing at the second-largest US pension plan contrasts with a more aggressive approach by CalPERS, the biggest US plan.
If CalPERS can keep pace, it could surpass the $5.3 billion in private equity commitments in the prior fiscal year
Top officials say CalPERS will be part of two investment partnerships with general partners, but won’t own a stake in them.
It was a much better grade than the CalPERS Investment Office, which got a ‘D’ because of turnover in senior management.
BlackRock and other investment firms were vying to manage all or part of the largest private equity program in the US.
Ted Eliopoulos is leaving Friday, but new CIO Yu Ben Meng can’t start until January because of a non-compete agreement. Eric Baggesen will become interim CIO.
Yu Ben Meng’s start date is being held up by the Chinese government, which could delay a vote on the launch of a $20 billion direct private equity investment organization.
The hearing on Dec. 5 will help determine if public workers’ pensions can be reduced and could have national implications.
CalPERS consultant finds without a huge increase in new private equity commitments, the fund will see a declining allocation to the asset class.
Priya Mathur, an advocate for CalPERS ESG programs, will be replaced by California police officer Jason Perez.