Investors - JUNE 9, 2015

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CalPERS to decrease number of external managers

by Zoë Wolff

The California Public Employees’ Retirement System will be reducing the number of its outside money managers by about 50 percent during the next five years.

Ted Eliopoulos, CIO of the $301.4 billion pension fund, says CalPERS has been implementing a multiyear restructuring plan since 2007, which has included bringing the number of managers from 300 to nearly 200 during the past eight years.

The pension fund will reduce the number of real estate managers from 51 to 15 and private equity managers from 100 to 30. The only asset class that is an exception to the reductions is infrastructure. Eliopoulos says CalPERS has been employing this plan in an attempt to “reduce risk, cost and complexity,” and this is the next step.

The pension fund will increase its infrastructure managers from six to 10. Eliopoulos says this is because infrastructure is “newer and growing,” and CalPERS has not yet reached its target allocation. He say

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