WEST PALM BEACH, FL (www.HedgeCo.Net) – The San Francisco based California Public Employees Retirement System {CalPERS} has agreed to disclose its private equity fees and other costs paid to hedgefund managers overseeing its private equity portfolios. The settlement resulted from a law suit filed by the California First Amendment Coalition in early September. CalPERS said it will release therecords of such payments effective 1999.
Earlier, CalPERS refused to such disclosures, reasoning that it may backfire on the pension fund manager�s efforts to gain acceptance in top-tier hedge fund management firms. Peter Mixon, Calpers’ general counsel said, “The disclosure of this information strikes the appropriate balance between the public’s right to access information and the continuing ability of Calpers to invest in these asset classes, which generate long-term returns to pay benefits.”
CalPERS� hedge fund portfolio returned about 16.7% in 2003. Mark Anson, the Chief Investment Officer explained that such returns were achieved while assuming limited risks. He said, “We trailed our benchmark last year because we took less risk — one fifth the risk of the market instead of [the planned] one half�. The CalPERS investment team took the time to educate themselves more about hedge funds.�
Currently CalPERS has $1 billion invested in its hedge fund portfolio. Recently, CalPERS decided to double its hedge fund assets, by devoting additional $1 billion to its hedge fund portfolio bringing its total investments to $2 billion. CalPers provides retirement and health benefit services to more than 1.2 million members and more than 2400 employers. According to company data, its membership includes inactive and retired members from the State, School districts, and local public agencies.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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