Tuesday, 30 September 2014
Last updated 24 sec ago
Dec 19 2007 | 8:00am ET
The California Public Employees’ Retirement System this week adopted a new allocation strategy for its $250 billion portfolio, boosting its private equity allocation to 10%. It had previously been set at 6%.
Global publicly-traded stocks, which were 60% of the total portfolio, will move down to 56% and will be evenly split between U.S. stocks and international stocks. Its fixed-income and inflation-linked assets combined will be set at 24% percent, and its real estate asset allocation will be 10%.
The system’s board also set ranges for investing. The pension set a range of +/-3% for its Alternative Investment Management program, +/-5% for total equity, +/-5% for fixed-income and the inflation-linked asset class combined, and +/-3 for real estate. In addition, inflation-linked assets will comprise from 0% to 5% percent of the overall portfolio.
CalPERS investment officers will use the targets to deploy capital over the next two to three years, when the board tentatively is scheduled to again review and revise the allocation mix, based on dynamic market trends.
“These revised allocation markers reflect the promise of our private equity, real estate, and asset-linked investment classes,” said Charles Valdes, chairman of CalPERS investment committee. “By hitting the reset button every few years, we keep our portfolio balanced and diversified in a fluid market that never stands still.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
The trading world is inundated with strategies and techniques. Here’s one way traders can get a handle on information overload.