Asset Allocation 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 Asset Allocation Investment Policy term or phrase. You'll also find information about the related policies and asset classes for each term.

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Forward Contract (Forwards) - An instrument that allows the purchase or sale of a specific quantity of a commodity, government security, foreign currency, or other financial instrument at the current price, with delivery and settlement at a specified future date.

Related Policy

Fund Benchmark - The average return of the asset class benchmark indices, weighted by asset class benchmark allocations. The fund benchmark return is the return attributable to the target asset class allocations. Staff employs active strategies in an effort to achieve a fund portfolio return that exceeds the fund benchmark return.

Related Policy