The California Public Employees Retirement System (CalPERS), the nations largest pension fund, has drafted a new performance disclosure policy for private-equity investments, answering the call for greater transparency and protection of members pension benefits.
CalPERS, which manages $131 billion in assets, will publish fund data on a quarterly basis including its internal rate of returns (IRR), the amount of cash invested and profits realized from investment. It also plans to work closely with the private equity industry to educate investors on IRRs and portfolio company valuations. Educational tools and primers will be available on its Web site beginning April 30.
"We intend to provide the highest level of transparency that will not conflict with our fiduciary duty to our members - to maximize investment returns," said Sean Harrigan, president of the board of directors, in a release. "We hope our policy creates a starting point for others to consider adopting policies that will work for them as well."
The fund previously said that such disclosure risks alienating investment partnerships, which could move to shut out CalPERS from future investment. CalPERS first began releasing some of its performance numbers back in November as part of the settlement of a lawsuit filed by the San Jose Mercury News.