US - A public spat has broken out at CalPERS, the world’s largest pension fund, as the president, Sean Harrigan, claimed he was to be ousted by political and corporate interests.

The claim came as CalPERS has increased its investment in direct house building through a joint venture with Shea Homes, the US’s largest private builder.

Harrigan told the Los Angeles Times that the $177bn fund was about to withdraw its support for him at a vote today. He was elected to his second one-year term as president in February and has been vocal proponent of corporate governance reform.

He told the LA Times that corporate and political interests were “trying to take out one of the most outspoken advocates on behalf of corporate governance in the country”.

CalPERS was a key institutional investor behind the move to remove Michael Eisner from being chairman of Walt Disney and has also urged investors to shy away from car makers unless they implement new emission rules.

Separately, CalPERS has teamed up with Shea to build planned communities for people aged over 55. CalPERS is investing $200m in Shea’s program, which is the pension fund’s eighth partner in its housing program.

Rob Feckner, chair of CalPERS' investment committee, said: “The active adult marketplace is ripe with opportunity. We believe demand will grow as the American population ages.”

The number of people between 55 and 64 is expected to near double by 2020 to 42m from 24m.

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