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Matthias Knab, Opalesque: The CalPERS Board of Administration voted to adopt a new investment model, known as the "total portfolio approach," which will increase transparency and give staff more flexibility to capitalize on a variety of market opportunities across asset classes.
Starting July 1, 2026, the total portfolio approach (TPA), will replace the strategic asset allocation (SAA) model CalPERS has used to guide investment decision-making.
Under SAA, the CalPERS Board periodically allocated a set amount to each asset class.
Under TPA, the focus will be on which investments can best contribute to the performance of the entire CalPERS portfolio, as opposed to achieving individual asset allocation targets.
"The CalPERS Board made history today by adopting the total portfolio approach after learning about its potential to deliver better returns for our members," said David Miller, chair of the CalPERS Investment Committee. "We are the first pension fund in the United States to do this, and I believe it will give CalPERS staff the edge they need to make sound investment decisions."
"As always, our goal is to improve our funded status and reduce employer and taxpayer contributions," Miller added.
The vote was taken as part of CalPERS' Asset Liability Management (ALM) cycle, a strategic planning process that occurs every four years and aims to balance the expected cost of future pension payments with anticipated investment returns.
With SAA, t...................... To view our full article Click here
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