CalPERS will separate its real estate assets into legacy and new portfolios, as part of a new strategic plan for the asset class that more accurately reflects its evolved role as a result of the fund’s recent asset liability study.
CalPERS’ outperforming internal corporate governance investments program will be challenged by the fund’s new capital allocation model, according to a review of the program by consultant Wilshire.
A desire to hedge the portfolio against extreme market risks and rising inflation, has resulted in the $220 billion CalPERS departing from its traditional asset allocation after a year-long review, and introducing the allocation of assets according to five broad groups.
CalPERS will introduce a new leadership organisation design next year, which includes for the first time a dedicated chief financial officer function coordinating all corporate finance functions including cash flow.
Thomas P DiNapoli was given a little scare in the recent US mid-term elections but, in the end, was returned fairly comfortably to his position of New York State Comptroller and sole trustee of the New York State pension fund. What happens next, though, may be more interesting.
CalPERS’ investment staff, and its consultant Wilshire, are recommending the board re-hire the fund’s external fixed-income managers which represent 9 per cent of the $50 billion fixed-income portfolio, despite the long-term strategy of a preference for insourcing.
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