Issues Update
CalPERS Says Reuters Story is False
October 23, 2009
CalPERS challenged Reuters news about its recent October 23 story titled “Laying on Bets at America’s Biggest Pension Fund” sending the following response to news editors who intend to republish the story: “CalPERS, Wilshire Associates and former CalPERS Chief Investment Officer Russell Read say Reuters report is false when it says that CalPERS was warned of an increase in the allocation for private equity by Wilshire in 2007. To the contrary, Wilshire supported the increase to private equity and Reuters has taken information provided to it out of context. It is not uncommon for staff and consultants to be of differing viewpoints, such as when the consultant and CalPERS expressed differing views on the risk related to the asset classes of infrastructure, commodities and stocks. (In that case the Board agreed to move incrementally toward a higher asset allocation on those asset classes, but there was no dispute about private equity.) But in the case of private equity, Read and Wilshire agree the representations regarding Wilshire’s advice to CalPERS in the Reuters story are false.”
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