California pension fund to invest $1 bln in Central Europe

The California Public Employees' Retirement System (CalPERS) has officially announced that it is interested in investing up to $1 billion in Central Europe. The pension fund plans to pull out of its investments in the Far East and has placed Poland, Hungary and the Czech Republic on its investment relocation list. In 2001 the company managed a $150 billion portfolio. According to Brad Pacheco, spokesperson for CalPERS, the relocation may take up to several months. "During the last few years many things have happened on the emerging markets that have increased foreign investors' interest," said William D. Crist, CalPERS Board President. "We will modify our system as these markets develop." The retirement fund's management made its decision based on a report by Wilshire Associates, an institution that supervises retirement funds' activities. Guenter Faschang, manager of Vontobel Holding funds in Germany, said that such investments may be beneficial to Poland, and most investors in the sector are interested in European Union (EU) applicants. (Parkiet, Feb. 23-25, p. 1; Rzeczpospolita, Feb. 23-24, p. B1) M.T.K.