Emerging Equity Markets Principles

The CalPERS Investment Committee recently approved a new principles based approach to investing in the emerging markets in lieu of the existing country list and permissible equity market analysis. The new principles based approach continues CalPERS policy of being a positive influence for improved practices in emerging markets, while increasing the opportunity set for CalPERS managers and providing a potential reduction in the volatility of CalPERS emerging markets returns.

The new principles based approach will present factors which managers should use to evaluate investments in emerging markets. Some of these factors include: political stability; development of basic democratic institutions and principles; transparency of information including elements of a free press; amount of engagement in harmful labor practices; promotion of corporate social responsibility and long-term sustainability; market regulation and liquidity; support of free market policies, openness to foreign investors; reasonable trading and settlement proficiency and reasonable transaction costs; and disclosure of environmental, social, and global governance issues.

If you would like historical information contained in the prior Permissible Equity Markets Investment Analysis Reports, please contact the Investment Committee Secretary at (916) 795-3400.

Additional Resources

Emerging Equity Markets Principles (PDF, 44 KB)

Dated: 11-17-2009