The California Public Employees' Retirement System (CalPERS) is intending to sign two new strategic partners to manage a multi-asset class portfolio and provide insights and analytics on asset allocation and portfolio construction decisions.

The investment managers which CalPERS currently has shortlisted are the AlphaSimplex Group, AQR Capital Management, PIMCO and Standard Life Investments.

Together they will manage a total of up to $2bn in assets. 

"The external partners will have discretion to invest in and move assets across a range of investments in the CalPERS portfolio, within a risk framework," said Farouki Majeed, CalPERS senior investment officer, asset allocation and risk management. "The objectives of the strategic partnership are to generate excess returns and help us develop more dynamic asset allocation and risk-budgeting capabilities."

CalPERS seeks managers based on a set of minimum qualifications and questions. Finalists will be selected using a scoring and ranking system. 

The scheme is the largest public pension fund in the U.S. with approximately $224bn in market assets. It administers retirement benefits for 1.6 million active and retired state, public school, and local public agency employees and their families and health benefits for more than 1.3 million members.

First published 04.07.2012

azeevalkink@wilmington.co.uk