The California Public Employees Retirement System (CalPERS) Investment Committee has agreed with a staff proposal to pick those investment advisors by next November. Those managers will be determined according to new standards on human rights, labor and environmental standards adopted by the nation’s largest pension fund last month.
The emerging markets standards will apply to about 2% of the $170 billion pension system, pulling the investments out of the current index fund investments and placing them under “active” management.
The board also directed its money management consultant, Wilshire Associates, to begin looking for experienced third parties to assist in the determination of how much weight to give factors such as political risk and labor standards in future investment decisions. Those weightings will be determined by the Committee in February.