CalPERS

Global Equity Glossary

This Glossary identifies, defines, and clarifies the meaning of investment terms used by CalPERS in our investment policies. The purpose of the Glossary is to establish a uniform vocabulary of terms for users of these policies.

Choose from the letters below to find a specific Global Equity Investment Policy term or phrase. You'll also find information about the related policies and asset classes for each term.

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C


CalPERS Custom Wilshire 2500 Index - The Wilshire 2500 Index, excluding tobacco stocks, and with dividends reinvested. The standard Wilshire 2500 comprises the top 2500 securities of the Wilshire 5000 Index, including Real Estate Investment Trusts and tobacco stocks, based on market capitalization, and is reconstituted annually. The Wilshire 5000 is an index that measures the performance of all U.S.-headquartered equity securities with readily available price data.

Related Policy

  • No related policies

CalPERS Financial Times Stock Exchange (FTSE) All World, ex-US, ex-Tobacco, Capitalization Weighted Index - The benchmark for the international equity asset class. The benchmark is created by Financial Times and reflects specific customizations, such as the exclusion of tobacco stocks as identified by the Investor Responsibility Research Center. The benchmark can be broken down into its underlying countries.

Related Policy

  • No related policies

CalPERS Financial Times Stock Exchange All World, ex-US, ex-Tobacco - The benchmark for the international equity asset class. The benchmark is created by Financial Times and reflects specific customizations, such as the exclusion of tobacco stocks as identified by the Investor Responsibility Research Center. The benchmark can be broken down into its underlying countries.

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  • No related policies

Capital Allocation - The process of distributing resources among different types of strategies.

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Capitalization Weighted - A weighting method based on the equity market capitalization of a stock. Market capitalization is calculated by multiplying the total outstanding shares of a stock by its price per share.

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Cash Buffer - An amount of the portfolio funds invested in cash equivalent securities, used for varying purposes, such as to avoid the incursion of a debit balance.

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  • No related policies

Clawback Provision (Lookback Provision) - A provision within the partnership agreement that allows for a review of the total profit distributed by the partnership at the end of a defined period. The clawback is a mechanism to recapture overpayments to the general partner or its limited partners if either party received more than their stated carried interest.

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Closed-end Funds - These are mutual funds professionally managed by an investment company with a finite number of shares issued. Closed end funds may be considered to be a derivative instrument as a component of their unit valuation is derived from the underlying value of the investments held by the fund.

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Commingled Fund - An investment vehicle that pools individual accounts of multiple investors. Each account holder owns units of the commingled fund similar to holding shares in a mutual fund.

Related Policy

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Commodities and Futures Trading Commission (CFTC) - An agency of the U.S. federal government that regulates the U.S. commodity futures and options markets. The CFTC is responsible for insuring market integrity and protecting market participants against manipulation, abusive trading practices, and fraud.

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Common Factor - An element of return that influences many securities and, hence, is a "common factor" in the returns on those securities. By virtue of their common influence on many stocks, common factors contribute to market return as well as residual returns of the stocks that they influence most. Some common factors for domestic equity are capitalization, beta, price/earnings, price/book, interest sensitivity, and yield.

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Common Factor Return - A portfolio?s or individual asset?s return component that is attributable to exposure to a particular common factor. This is derived from the unique return attributed to the common factor.

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Common Factor Risk - The risk attributable to the effects of common factors.

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Concentrated or Strategic Block Funds - These are funds that focus their investments in relatively few companies. Their intent is usually to gain board of director?s representation in undervalued but fundamentally sound going concerns, and then proactively work with management, boards of directors and shareholders on major issues of strategy, capital structure, management and performance.

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Corporate Actions - An action taken by a company that causes a material change in structure including, but not limited to, name, price, shares, capitalization, or other such events. Typical corporate actions include tender offers, mergers, Dutch auctions, and spin-offs.

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Crossover Funds - These are hedge funds that contain both a public markets component and a private markets component. Generally, the public market component is in the form of a long/short strategy.

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Custodian - A bank or other financial institution that provides custody of stock certificates and other assets of an institutional investor.

Related Policy

  • No related policies