CalPERS Seeks High-Yield Manager Contract Renewal

May 6, 2003 ( - California Public Employees' Retirement System (CalPERS) is asking its Board of Directors to renew contracts for the five outside companies that manage $1.2 billion of its high-yield fixed-income assets.

The staff of the nation’s largest public pension fund recommended that the board renew one-year contracts with ING Ghent Asset Management LLC, Nomura Asset Management Inc., Pacific Investment Management Co., Shenkman Capital Management Inc. and Highland Capital Management LP, according to a Dow Jones report.

The five managers were placed under their current contracts in February 2002. As of the end of the month:

  • ING managed $221.9 million
  • Nomura managed $236.4 million
  • Pimco managed $230.4 million
  • Shenkman managed $231.7 million
  • Highland Capital Management managed $172.2 million
  • Highland Capital Distressed Fund managed $93.3 million.

CalPERS says the objective of its high-yield fixed-income program is to provide diversified exposure to the high-yield market and that a goal of the external managers is to outperform the Salomon Smith Barney Cash Pay High Yield Index.   The board of the $130-billion pension fund will vote on the request next week.