The $177 billion California Public Employees Retirement System (CalPERS) fund will vote on a staff recommendation to fire Deutsche Asset Management, Paribas Asset Management, ValueQuest/TA and Schroder Capital Management as managers of some $4 billion of the fund’s international investments.
According to information posted on the CalPERS Web site, the staff recommendations were based on:
- Organizational changes – mergers or acquisitions at the investment managers
- Turnover of key senior investment professionals on the investment team
- Lack of consistency in risk-adjusted returns (information ratio) relative to peers
The Investment Committee will also decide on a divestiture of tobacco holdings by the fund. CalPERS staff was opposed to the move, but was asked to present an analysis of the cost and exposure of taking that step at this meeting.