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Corporate Governance External Managers and
Co-Investments

The strategic objective is to broaden the opportunity set of CalPERS investment portfolio to achieve returns not available in traditional public markets.

Our corporate governance team manages an active investment program by partnering with external corporate governance fund managers and through co-investments, managed internally, with our partners. A Corporate Governance Investment (CGI) Program is broadly defined as a highly concentrated portfolio where the portfolio managers of the fund actively engage the portfolio companies to unlock value through governance, operational, strategic, and/or board changes.

The CGI Program has more than $4.8 billion dollars of capital invested amongst 21 external corporate governance funds and co-investment partners. The asset allocation of the program contains both domestic and international countries, including the U.S., Europe, UK, Japan, and Korea. Since inception in 1999, the CGI Program (represented by the CG Composite in the chart below) has outperformed its Corporate Governance (CG) Weighted Benchmark by 518 basis points.

In February 2007, the CalPERS Board of Administration approved expansion of the Corporate Governance Investment Program to include investments in foreign emerging markets and in May 2008 we made our first investment in a Korean corporate governance fund. In September 2009, we added another emerging market fund that specializes in Emerging Europe, Middle East, Asia, Latin America and Africa.

Corporate Governance Performance Chart

Guiding Policy (PDF, 108 KB)

View the Statement of Investment Policy for Corporate Governance Investments.