Thursday, June 21, 2007

CalPERS news: relaxed restrictions on emerging markets, more investment in governance

CalPERS, the activist pension fund responsible for huge strides in shareholder activism and corporate accountability, announced today that it is scaling back its governance based restrictions on investing in emerging market countries.

From this article:

Trustees of the California Public Employees' Retirement System have suspended their plans to hire market researchers to start work on an annual report card ranking more than two-dozen emerging market countries for such things as unfair labor practices and geopolitical dangers.
The strategy shift comes after CalPERS consultants reported that the pension fund has lost some $200 million in potential profits because of rigid rules.

However, CalPERS is still making governance strides in other respects: their investments in corporate governance based funds has gone up:

CalPERS' trustees approved increased hedge fund and corporate governance fund allocations, totaling up to $15 billion in new investments. At its meeting Monday, the board increased each target to 5% of the $156.5 billion global equity portfolio, plus or minus three percentage points each, up from 3%. The $247.9 billion California Public Employees' Retirement System, Sacramento, currently invests $5.1 billion in corporate governance funds and $5 billion in absolute return funds.

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