CalPERS sticks with PCA

In one of the most prestigious appointments in real estate consultancy, the board of the California Public Employees' Retirement System reaffirmed Pension Consulting Alliance as its principal real estate consultant following a competitive tender.

The board of the California Public Employees' Retirement System (CalPERS) has picked Pension Consulting Alliance (PCA) to remain as its top real estate consultant, the giant US pension has revealed.

The Sacramento-based investor had put up for tender a contract for one firm to become its principal real estate consultant, but the current incumbent PCA was picked ahead of rivals. The other finalists interviewed yesterday by the pension fund’s board were Callan Associates and Courtland Partners.

“PCA has provided the board with valuable insight over the past few years as our real estate staff has worked to restructure our portfolio,” said George Diehr, chair of the investment committee and vice president of the CalPERS board. “We're confident their experience will continue to help us evaluate and assess potential investment opportunities in the future.”

In February, the CalPERS board adopted a new real estate strategy that focuses primarily on income-producing investments largely located in the US. As of 30 September 2011, the market value of its real estate portfolio stood at $19.1 billion, up 26 percent from the same time a year ago.

“All the companies we interviewed for the role of board real estate consultant had much to offer,” said Rob Feckner, president of the CalPERS board. “PCA has shown they have the knowledge and skill to provide investment advice as we move forward with a strong, comprehensive real estate strategy.”

The new contract is scheduled to take effect on 1 April next year.