Wanted: Investment Partners for Multi-Asset Class Portfolio

The nation’s largest public pension system is seeking those partners to manage a multi-asset class portfolio and to “provide insights and analytics on asset allocation and portfolio construction decisions”.

According to the announcement, CalPERS expects to retain two or three firms to manage a total of up to $2 billion in assets. The solicitation begins September 23, 2011, and ends on October 21, 2011.

“The external partners will have discretion to invest in and move assets across a range of investments in the CalPERS portfolio, within a risk framework,” said Farouki Majeed, CalPERS Senior Investment Officer, Asset Allocation and Risk Management. “The objectives of the strategic partnership are to generate excess returns and help us develop more dynamic asset allocation and risk-budgeting capabilities.”

CalPERS will seek managers based on a set of minimum qualifications and questions. Finalists will be selected using a scoring and ranking system.

Submitting Proposals

Investment managers can submit proposals through CalPERS Investment Proposal Tracking System.  For information on minimum qualifications, the solicitation process and how to submit a proposal, go to the Investment Proposals page at http://www.calpers.ca.gov/index.jsp?bc=/investments/investment-proposals.xml.  Click on the “MAC Partners” link in the “Special Instructions for Open Solicitation” in the right navigation bar.  Or you can just click http://www.calpers.ca.gov/eip-docs/investments/mac-invit-letter.pdf.

CalPERS is the nation’s largest public pension fund with approximately $224 billion in market assets. It administers retirement benefits for 1.6 million active and retired State, public school, and local public agency employees and their families and health benefits for more than 1.3 million members.