State Street Global Advisors has been dropped as a manager for a $13.3 billion California Public Employees’ Retirement System mandate as part of a move by the nation’s largest pension fund to manage more of its assets in house. According to Financial News, CalPERS’ board of directors had voted to allow the pension giant to manage up to 50% of its nearly $206 billion in assets in-house. State Street’s contract represented about half of the total of CalPERS’ passive international equities mandate; the firm, which has a 15-year relationship with the pension fund, still manages other mandates. The move is expected to save CalPERS more than $2.6 million in management fees a year.
