Asset AllocationThe starting point and most important element of CalPERS successful return on investment is our asset allocation - our diversification among stocks, bonds, cash and other investments.
Asset allocation is not an asset-only or liability-only decision. All factors, including liabilities, benefit payments, operating expenses, and employer and member contributions are taken into account in determining the appropriate asset allocation mix. Our goal is to maximize returns at a prudent level of risk - an ever-changing balancing act between market volatility and long-term goals.
CalPERS follows a strategic asset allocation policy that identifies the percentage of funds to be invested in each asset class. Policy targets are typically implemented over a period of several years on market declines and through dollar cost averaging.
CalPERS current asset allocation mix by market value and policy target percentages as of October 31, 2009 are:
|
Asset Class
|
Market Value
($ Billion)
|
Actual
Allocation
|
Target1
|
|
Cash Equivalents
|
$2.8
|
1.4%
|
2.0%
|
|
Global Fixed Income
|
$48.1
|
24.6%
|
20.0%
|
|
AIM
|
$22.7
|
11.6%
|
14.0%
|
|
Equity
|
$103.7
|
53.0%
|
49.0%
|
|
Total Global
Equities
|
$126.4
|
64.6%
|
63.0%
|
|
Real Estate
|
$13.5
|
6.9%
|
10.0%
|
| Inflation Linked |
$4.6
|
2.3%
|
5.0%
|
|
Total Fund*
|
$195.5
|
100.0%
|
100.0%
|
1 Target allocation effective June 2009.
* Figures for this document are rounded for viewing purposes.
Dated: 12-14-2009
|
CalPERS Assets
