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January 14, 2010
press release
CalPERS Releases Placement Agent Disclosures
SACRAMENTO, CA – The California Public Employees’ Retirement System (CalPERS) today released more than 600 placement agent disclosures obtained by the pension fund from its external investment managers.
The disclosures – received between May and January 2010 – were obtained voluntarily from CalPERS external investment partners as well as under CalPERS new policy that mandates disclosure on the use of placement agents and fees on proposed new investments and amendments to existing investments which occur after May 2009.
“In light of recent questions raised about placement agents, we are working aggressively to take measures to provide transparency, adopt thoughtful reforms, and restore trust in our system,” said Anne Stausboll, CalPERS Chief Executive Officer.
“We have turned all of this information over to the law firm of Steptoe & Johnson, which is assisting us in our special review of placement agent activity given these and earlier disclosures,” she added. “Gathering information is not enough. We remain firmly committed to pursuing a full and fair examination that the special review will provide, and to backing legislation that would remove contingent fee arrangements and require placement agents to comply with the same rules as lobbyists.”
Last month, the CalPERS Board voted to sponsor new state legislation that would require placement agents to register as lobbyists; prohibit compensation paid contingent upon defeat, enactment or the outcome of any proposed investment action; significantly limit gifts to individuals; and prohibit campaign contributions.
Today’s disclosures include placement agent information related to new investment proposals since May 2009, when the CalPERS Board adopted a policy requiring placement agent disclosures and fees paid on new investment proposals and amendments to existing investments.
They also contain information voluntarily disclosed by external managers with ongoing commitments to pay a placement agent in connection with an existing CalPERS investment. Certain external managers who were mentioned in news stories following various actions brought by the New York Attorney General and the U.S. Securities and Exchange Commission were asked to voluntarily provide retroactive placement agent information.
Over 90 percent of CalPERS external managers who were asked to either voluntarily respond to either an ongoing placement agent relationship or a retroactive payment responded with disclosures.
Attachments
Attachment 1 Ten placement agents by compensation
For the full disclosures as reported by external manager please visit:
ftp://ftp.calpers.ca.gov/
Login: agentrpt
Password: calpersnews
Note to Reporters and Editors: The information contained in these disclosures is authored by the external managers, not CalPERS. We strongly encourage you to contact the authors of the materials prior to publication and review our Web site at www.calpers.ca.gov for further information such as investment commitments and performance of managers. If you have a question for CalPERS, please email our Press Room on our Web site.
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