CalPERS Names Daniel M. Szente as New Chief Investment Officer.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--May 24, 2000

A 21-year veteran of the investment industry -- with substantial public pension and private industry investment experience -- has been named to the post of Chief Investment Officer, Chief Executive Officer James E. Burton announced today.

Daniel M. Szente, 52, will come to CalPERS from Pennsylvania-based McGlinn Capital Management, where he was Executive Vice President and Director of Research. Szente has more than 16 years' investment policy and management experience in the public sector, serving as Assistant Director of Investments of the State Teachers Retirement System of Ohio.

Szente will be responsible for managing the nation's largest public pension fund with assets totaling nearly $175 billion. He will oversee a 100-member investment staff and a diversified portfolio that includes equities, fixed income, alternative investments, and real estate. The CIO works closely with the Board of Administration in setting investment strategy, establishing the fund's asset allocation and oversees the fund's external managers.

Szente will assume the CIO position on July 1.

"Dan has an excellent blend of public and private experience, investment savvy and leadership qualities that are ideally suited to furthering our investment strategy," Burton said. "We look forward to working with him."

Szente holds a Bachelors of Science degree, a Masters in Business Administration from Ohio State University and has the designation of Chartered Financial Analyst. After completing his MBA, Szente joined Ohio STRS as an equity analyst. He was promoted to the position of Director of Equity Research and then Assistant Director of Investments, reporting to the CIO. He was involved in every facet of the investment process, from analyzing individual investments in stocks, bonds, private equity, and real estate and formulated and implemented asset allocation plans and investment policy, including the international investment program. Szente left Ohio STRS in 1995 to manage the Howard Hughes Medical Institute's equity portfolio, and in 1998, moved over to McGlinn Capital Management where he served as Executive Vice President and Director of Research.

Investment Committee Chairman Michael Flaherman said the system is fortunate to have a professional of his caliber. "Dan is a seasoned leader and I have great confidence in his ability to advance our investment agenda."

The appointment of Szente concludes a three-month international search for the chief investment officer position. The international search was led by Pendleton James Associates of Boston. The vacancy was prompted by the February departure of Sheryl K. Pressler.

CalPERS investments span across a broad range of asset classes, including more than $116 billion in U.S. and international stock, $44 billion in U.S. and international fixed income, nearly $9 billion in real estate, and $6 billion in privately held investments.

CalPERS is the nation's largest public pension fund. The System provides retirement and health benefits to more than 1 million state and local government employees and their families. For further information on CalPERS, please visit the System's web site at www.calpers.ca.gov.