Updated
Updated · Pensions & Investments · Jul 2
CalPERS Overhauls $625.7 Billion Fund With Total Portfolio Approach
Updated
Updated · Pensions & Investments · Jul 2

CalPERS Overhauls $625.7 Billion Fund With Total Portfolio Approach

1 articles · Updated · Pensions & Investments · Jul 2

Summary

  • CalPERS is restructuring management of its $625.7 billion pension fund around a total portfolio approach, marking a historic shift in how the system allocates risk and capital.
  • The overhaul replaces a more siloed asset-class framework with a fundwide view, aiming to make investment decisions across the entire portfolio rather than within separate buckets.
  • Key milestones in the transition show the change has been years in the making, underscoring how deeply the new model will reshape governance, portfolio construction and execution.
  • The move comes as large pension investors face pressure to improve flexibility and liquidity management, with Ohio State Teachers still prioritizing liquidity amid ongoing cash-flow strains.

Insights

As pension funds face cash crunches, is a massive, risky overhaul the only answer?
Are pension funds gambling with retirement security by chasing high-risk private market returns?