CalPERS Selects Emerging Market Investment Managers.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 24, 2002

The California Public Employees' Retirement System (CalPERS) has selected four investment firms to actively manage up to $1 billion of emerging market assets.

The investment firms, which were chosen from a world-wide search, include:

-- AllianceBernstein, based in New York, New York;

-- Capital Guardian Trust Company, based in Los Angeles,

California;

-- Dimensional Fund Advisors, based in Santa Monica, California; and

-- Genesis Asset Managers Ltd, of Knightsbridge, London.

They were selected from a list of seven firms interviewed by the System's Investment Committee.

"This line-up of managers have disciplined investment strategies and the research capability to create long-term value for our fund," said William D. Crist, President of CalPERS Board of Administration.

CalPERS emerging market managers will receive funding after the pension fund concludes its review of its permissible country guidelines.

In November 2000, CalPERS Board directed a full examination of a variety of factors that the System uses in determining which international countries are suitable for prudent investing.

Historically, the pension fund has determined country selection based on the following six factors:

-- market liquidity and volatility;

-- market regulation and investor protections;

-- capital market openness;

-- settlement proficiency;

-- transaction costs; and

-- political stability.

CalPERS has expanded its framework to also include a higher standard of political stability and two additional investability factors: financial transparency and labor standards.

"With our managers in place and the future selection of permissible countries on the horizon, we will soon have the combination we need to actively manage investments in today's emerging markets," said Michael Flaherman, Chair of CalPERS Investment Committee.

CalPERS Investment Committee will consider in February country rankings that will dictate whether a country is permissible or restricted for investment by the pension fund.

Once approved by CalPERS Board, emerging market managers will have an opportunity to review the System's new permissible country list to determine if they can effectively manage assets under the new mandates.

Agreements with the fund managers will be contingent upon final contract negotiations, including fees, and terms and conditions.

CalPERS is the nation's largest public pension fund with assets totaling approximately $147 billion. The System provides retirement and health benefits to more than 1.2 million State and local public agency employees and their families. For further information on CalPERS, please visit the System's web site at www.calpers.ca.gov.