The $350 billion California Public Employees’ Retirement System’s new portfolio will look more like the current one than other options. The pick balanced portfolio risk with liability concerns.
Manager selection led to nearly three-quarters of outperformance for Texas Teachers in 2017 as the fund beat its benchmark by 168 basis points.
The California Public Employees’ Retirement System announces it won’t be introducing leverage, and gives some details on how it will choose a portfolio in December from the four it’s considering.
The chair of the International Forum of Sovereign Wealth Funds, Adrian Orr, says entities such as the IMF could pave the way for large-scale investment in emerging-market infrastructure projects.
CalPERS’ board has named Meketa its new infrastructure consultant, citing its high ratings and setting aside investment office calls to have a single adviser for infrastructure and real estate.
Prominent CIOs say active management’s place is secure, even as passive strategies surge in popularity. But the two types of strategies aren’t as distinct as in years past.
CalPERS is happy with its consultants, except for their performance in recommending ways to control fees and costs and their presentation of new investment ideas, a board rating reveals.
Nevada’s public pension plan only pays 11 bps in total costs due to 80 per cent of the fund being indexed. But CIO Steve Edmundson says low fees are a byproduct, not the reason for the strategy.
CalPERS has expanded its tracking of strategic metrics in its ongoing review of performance, which could lead to some tough queries making their way into online recordings of board sessions.
The board of the United States’ largest pension fund calls in the experts as it considers applying leverage in its portfolio, part of efforts to improve a 68 per cent liability-funding ratio.
The equity risk premium will reflect long-term averages, based in part on a Financial Analysts Journal article that shows buybacks are now top drivers of equity returns, replacing dividends.
The challenging market environment is putting pressure on pension funds. In response, many are lowering return targets, rather than taking on more risk or requesting larger contributions.