CalPERS' Trust Level Portfolio Management Program (TLPM) is responsible for delivering targeted, risk-adjusted, total fund level investment returns over the long-term, anchored by the belief that strategic asset allocation is the dominant determinant of portfolio risk and return. TLPM provides a disciplined, organized approach to strategic and dynamic portfolio construction decision making consistent with CalPERS Investment Beliefs and portfolio priorities. The program operates with a focus on repeatable, predictable, and scalable total fund portfolios and practices in a cost-effective, transparent, and risk-aware manner that includes the following functions:

  • Strategic Asset-Liability Management: Implementation of CalPERS Public Employees' Retirement Fund (PERF) and Affiliate Funds' strategic Asset-Liability Management Policy in coordination with the System's Actuarial and Finance Offices, managing Strategic Asset Allocation exposures within ranges, developing capital market assumptions, evaluating risk targets and tolerances, benchmarking, and research into alternative asset allocation approaches.
  • Dynamic Asset Allocation: Internal and externally managed multi-asset class strategies which encompass investment risk mitigation, strategic exposures, liquidity and leverage management, replication, rebalancing, and strategic overlay portfolio management.
  • Portfolio Strategy Research and Development: Ongoing examination of macro-economic factors, long-term trends in capital markets, enhancing CalPERS' ability to model valuation factors, liabilities, regime shifts, and sustainability (ESG) issues that may impact the Total Fund.

Assets in the Portfolio: Multi-Asset Class

Investment Division: Total Fund

Allocation by Asset Class as of June 30, 2017
Asset Class Current Allocation Interim Strategic Target* Actual Investment (Billions)
Growth 56.3% 54.0% $182.1
Public Equity 48.3% 46.0% $156.2
Private Equity 8.0% 8.0% $25.9
Income 19.4% 20.0% $62.9
Real Assets 11.2% 13.0% $36.3
Real Estate 9.4% 11.0% $30.5
Forestland 0.6% 1.0% $2.0
Infrastructure 1.2% 1.0% $3.8
Liquidity 4.8% 4.0% $15.5
Inflation 7.8% 9.0% $25.3
Trust Level** 0.5% N/A $1.7
Total Fund 100.0% 100.0% $323.7

* Interim strategic targets were effective as of October 1, 2016.
** Trust Level includes: Absolute Return Strategy; Multi-Asset Class; and Overlay, Transition, and Plan Level

Current Portfolio Size: View CalPERS Investment Fund Values

Investment Proposals: New external managers are selected through a formal solicitation process. Find more information on Manager Solicitations, Investment Proposal Submission, and other CalPERS Business Opportunities.

Emerging Manager Program: The Trust Level Portfolio Management Program does not currently have an Emerging & Transition Managers Program.

Policy:

View all Investment Policies.

View CalPERS Beliefs for our views on public pension design, funding, and administration.

Key Board Engagements: