In the first move to implement the new strategic asset allocation approved in December, CalPERS has introduced a raft of new benchmarks including composite benchmarks for the new asset classes of growth, real and liquidity created under the restructure.
The institutional pull of CalPERS and CalSTRS is not enough for placement agents to change their practices, with a study of global placement agents revealing discontent over new legislation which requires them to register as lobbyists if they are working with public pension funds in California.
One of the world’s most innovative and progressive companies, Apple, is the target of lobbying by CalPERS, demonstrating that dropping mandatory majority voting in director elections from the final version of the Dodd-Frank Act, hasn’t deterred shareowners from taking the matter into their own hands.
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.
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