The Investment Office invests and manages CalPERS assets. The portfolio invests in stocks, bonds, real estate, private equity, inflation-linked assets, and other public and private investment vehicles. Our goal is to generate total returns on a long-term basis while managing risk.
- Individual investment decisions are made by an internal trading staff as well as external equity managers on behalf of the CalPERS Board of Administration.
- The Board adopted a set of beliefs that articulate the Pension Fund's views on the public pension design, funding, and administration.
- The Board has investment authority and sole fiduciary responsibility for the management of CalPERS assets.
- Trading decisions are governed by policies established by the Investment Committee in accordance with applicable law.
- With the Board's guidance, the Investment Committee and Investment Office carry out the daily activities of the Investment Program.
Global Equity is the principal asset class providing growth exposure in our strategic asset allocation, representing approximately half of Total Fund assets. The GE team is responsible for managing all public equity exposure, which includes direct in-house implementation of domestic, international, and emerging market index and alternative-beta portfolios, as well as oversight of externally-managed active strategies. GE is also responsible for our Corporate Governance activities, including proxy voting and corporate engagement.
Assets in the Portfolio: U.S. and international public equities, foreign currencies, and derivative exposure.
Global Fixed Income is responsible for managing and overseeing the Total Fund’s Global Fixed Income Program and the CalPERS Short Term Investment Fund. Income consists mainly of investment-grade and high-yield corporate securities, foreign country debt, mortgage-backed securities, and U.S. Treasuries. The income mandate is to serve as an economic diversifier to the Total Fund equity risk and to be a reliable source of income and liquidity.
Assets in the Portfolio: U.S. and international bonds.
The Opportunistic Strategies Program enables the Total Fund to access investment opportunities outside of the existing asset classes.
Assets in the Portfolio: U.S. and international investments opportunities outside of the existing asset classes.
View the Opportunistic Strategies Portfolio & Performance Report (PDF) for more information.
The Private Equity Program focuses on leveraging its scale, expertise and long-term orientation to achieve attractive risk-adjusted equity returns by investing across private market strategies globally. Private market investments are typically held over longer-investment horizons with limited liquidity, but in return provide the Total Fund with increased diversification and enhanced returns. The program aims to build long-term partnerships with exceptional investors around the globe and invest in both fund partnerships and co-investments into operating companies. Consistency in capital deployment and strategy are critical to the long-term success of the Private Equity Program.
Strategies in the Portfolio: Buyouts, credit-related, venture capital (legacy only), growth/expansion, and opportunistic.
Visit Private Equity Program Fund Performance Review for more information.
The Real Assets Program consists of three distinct portfolios: Real Estate, Infrastructure, and Forestland. These investments are acquired and managed through separate accounts, joint ventures, and commingled funds between CalPERS and investment management firms. The role of the Real Assets Program is to provide a stable and predictable cash yield, diversification of equity risk, and inflation protection.
Strategies in the Portfolio: Real Estate, Infrastructure, Forestland.
View the Real Assets Portfolio and Performance Report (PDF) for more information.
The Research & Strategy Group provides economic and quantitative analysis to support the investment-decision making process at both a Total Fund and asset class level. The team performs ongoing examination of macro-economic factors and long-term trends in capital markets, enhancing our ability to model valuation factors, liabilities, regime shifts, and environmental, social, and governance (ESG) sustainability issues that may impact the Total Fund.
Our Trust Level Portfolio Management & Implementation is responsible for managing the Asset Liability Management process, implementing the strategic asset allocation set by the board, managing the Affiliate Funds, and providing centralized trading services.
Assets in the Portfolio: Multi-asset class.
View the Trust Level Portfolio Management Portfolio & Performance Report (PDF) for more information.
Other Investment Divisions
Board Governance & Sustainability advises on board governance and strategy, along with strategy for specific programs within investments, including the Emerging Manager Program and Total Fund Governance & Sustainability Strategic Plan.
ICOR is responsible for trade controls, policy testing, benchmark and policy governance activities, operational due diligence, and overall support for the operational risk control environment of the Investment Office.
Investment Risk & Performance is responsible for creating transparency in our portfolios and investment processes in order to ensure that investment risks are intended, understood, and compensated. The team's mandate includes portfolio analytics at both the trust and asset class levels, independent and unbiased reporting of investment performance and risk, and ongoing monitoring of key investment risk areas.
The Investment Servicing Division plays a pivotal support and enabling role within our Investment Office. The division is responsible for trade support and investment operations, management and oversight of investment-related technology, investment-related data, and internal financial services to develop and implement Investment Office strategic planning efforts. The division is comprised of three teams: Investment Operations and Data Integrity, the Technology Management Unit, and Investment Finance Services, Contract Oversight, and Strategic Planning.
At the direction of the Deputy Chief Investment Officer, Private Asset Analytics leads and provides private market subject matter expertise for strategic initiatives and special projects across the Investment Office bringing specialized expertise in private market assets.
Total Fund Business & Analytical Services is responsible for delivering high-quality business, analytical, and administrative support services to Investment Office Asset Class and Program customers through a centralized operating model.