CalPERS to decrease number of external managers
The California Public Employees’ Retirement System will be reducing the number of its outside money managers by about 50 percent over the next five years, from 212 to 100.
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 over 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 excepted from 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 explains this is because infrastructure is “newer and growing,” and CalPERS has not yet reached its target allocation. He says the board look