December 15, 2015

The Los Angeles Times (Times) has missed the mark in its coverage of CalPERS and private equity. The Times' story states CalPERS staff was proposing changes to its Private Equity Program Policy (PDF) that would have eliminated the requirement for staff to meet a benchmark when investing assets.

This is wrong, and worse yet, the headline is misleading. Nothing was "shelved." The policy was approved, and our Board voted to retain language to ensure the investments maximize risk-adjusted returns and enhance the equity return of the Fund.

The current benchmark is the FTSE U.S. Total Market Index (67%) + FTSE All World ex U.S. Total Market Index (33%) + 300 basis points, lagged one quarter. Regardless of the proposed and adopted policy changes yesterday, it remains that.