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.

A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  #  ALL  


A


Active Investment Process - An investment process that involves a certain degree of active management as defined below. The objective of an active investment process is to outperform the broad market benchmark.

Related Policy

  • No related policies

Active Performance - The return of a portfolio that is in excess of its benchmark return. This is the return of the active portfolio.

Related Policy

  • No related policies

Active Portfolio - A portfolio that is managed with the expectation of earning investment returns in excess of those earned by its benchmark.

Related Policy

  • No related policies

Active Risk - The difference in the volatility of the returns in an active portfolio relative to the portfolio's benchmark.

Related Policy

  • No related policies

Alternative Solicitation Process - A process for identifying and selecting external asset managers utilizing the on-line Investment Proposal Tracking System. This process may target a particular strategy type, or may continuously assess submitted investment proposals and replaces a formal request for proposal.

Related Policy


American Depository Receipts (ADRs) - Receipts for the shares of a foreign-based corporation held in the vault of a U.S. bank. ADRs, which are denominated in U.S. dollars, allow U.S. investors to get exposure to foreign stocks within the U.S. stock exchanges.

Related Policy

  • No related policies

Arbitrage - The execution of a transaction having no or minimal risk or market exposure to profit from a mis-pricing between the instruments.

Related Policy

  • No related policies

Asset Allocation - The process of dividing investments among different types of assets to optimize risk and return.

Related Policy


Asset Class Tracking Error - The expected or ex ante annualized standard deviation of the return difference between an asset class and its assigned strategic benchmark as calculated from the Investment Office Risk Management system.

Related Policy