CalPERS May Trim List Of Alternative Managers

Jul 20 2011 | 8:34am ET

CalPERS may reduce the number of alternative investment funds to which it allocates.

The $241.3 billion California Public Employees’ Retirement System says research shows 80% of its returns come from 55 of the 500 funds in which it invests under its alternative investment management program.

Real Desrochers, a senior investment officer for alt investment program, told Pensions & Investments the numbers show the pension needs a “more concentrated portfolio” in this space but said no decisions to terminate managers have been made. Desrochers said a full review of the program is underway and would be finished in September.

Although there may be too many cooks, the CalPERS AIM program did well during the year ending March 31, returning 25.34% to beat the benchmark of 20.58%. Overall, the entire fund earned 20.7% for the year ended June 30, thanks mostly to gains in stocks (which returned 30.2% for the year) and private equity (25.3%).

“Obviously the results are pleasing,” said Chief Investment Officer Joe Dear. “We are in the 20% club. It was a good year. We are back.”


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR