CalPERS’ three-and-a-half-year overhaul of its $242 billion global equities portfolio has delivered the program’s highest alpha in almost three decades, after the pension giant deployed $65 billion back into active strategies and dramatically tightened manager selection.
Singaporean sovereign wealth fund Temasek saw its exposure to China surge by $7.7 billion in the last reporting period as valuations rebounded in the world’s second-largest economy. It is also planning to more than double its exposure to the AI value chain within the next five years.
As asset owners grapple with the appropriateness of a total portfolio approach for their fund, new ICPM research has outlined building blocks to be considered in the process including some essential “enablers”, like governance structures, and optional “levers”, like incentive architecture. ICPM managing director Adrian Trollor unpacks the framework.
The State Teachers Retirement System of Ohio has warned of a “material” increase in US recession risk compared to last year as the fund braces for a wider, “negatively skewed” distribution of outcomes in the next 12 months. It came as the mature plan, which is 81 per cent funded, is tilting to fixed income and new asset classes like liquid alternatives over equities.
Senior executives from some of the world's largest private market managers gathered in Berlin this month with a collective understanding: managers who move slowly on AI face not just weaker returns but the risk of owning businesses that have been competitively displaced before they can exit.
Temasek chief executive Dilhan Pillay says the sovereign investor is likely to miss its 2030 interim climate target, as exposures to the aviation and power generation sectors are crimping the investor’s ability to reduce portfolio target emissions. But the $339 billion fund is sticking to its net zero by 2050 goal, stressing the slower decarbonisation pace "reflects the realities of the broader global economy."
Three of the largest US pension funds, managing a combined $1 trillion in assets, have demanded a meeting with SpaceX executives ahead of its speculated blockbuster IPO warning that its proposed corporate plan could be “the most management-favourable governance structure ever brought to the US public markets”.
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