No Immediate Changes Being Proposed to CalPERS' Private Equity Benchmark
December 14, 2015
Despite published reports, there are no immediate changes being proposed to CalPERS' private equity benchmark at the pension fund's Board meeting today. The statements are simply inaccurate.
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 any action today it will remain that.
The revisions (PDF) being proposed to CalPERS Private Equity Policy continue an effort to simplify process and better align program policies with the fund’s overall total fund policy. CalPERS staff is not requesting any modifications to the investment authorities, limitations, or constraints as any element of the proposed changes.
As has been publicly stated, the CalPERS Board and staff will be examining all of the fund's benchmarks next year as part of the asset allocation process to ensure benchmarks are aligned with the Fund's Investment Beliefs. At that time the Board and staff may consider revisions to add perspective to the risk and return of private equity and other investment programs that may lead to benchmark changes in the future.