CalPERS
PensionCalifornia · as of 2024
AUM
$490B
Held in U.S. securities
$223B
46% of AUM
Return target
6.8% (discount rate / assumed return)
Asset allocation policy
Target weights set by the board in the plan's Investment Policy Statement. Each class has a rebalancing range — drift outside the range triggers a rebalance; performance is measured against the listed benchmarks.
| Asset class | Target | Range | Benchmark | $ value |
|---|---|---|---|---|
| Public equity | 42% | 35–49% | FTSE Global All Cap Index (custom) | $206B |
| Income (fixed income) | 30% | 21–39% | Custom long Treasuries / credit blend | $147B |
| Private equity | 13% | 6–20% | FTSE All World All Cap Index +1.5% spread | $64B |
| Real assets (real estate + infrastructure) | 13% | 6–20% | NCREIF ODCE (real estate) / custom infra | $64B |
| Private debt | 5% | 2–8% | Bloomberg High Yield +1.5% | $25B |
| Liquidity / leverage | -3% | -5–0% | 90-day T-bill | $-15B |
Holdings overview
Public equity is mostly internally managed via passive index replication; active U.S. equity is roughly 15% of the public equity sleeve. Fixed income is internally managed across Treasuries, credit, and securitized. Private equity ($65B+) is deployed across ~300 fund commitments.
Board mandates
- Pay benefits to ~2 million California public employees and beneficiaries.
- Board-approved Strategic Asset Allocation reviewed every 4 years (latest: 2021 ALM cycle).
- Up to 5% portfolio leverage permitted to reduce overall risk while meeting return target.
- Divested from thermal coal companies (2017, SB 185) and tobacco (2000).
- Sustainable Investment Strategic Plan integrates climate transition into manager selection.
Source: www.calpers.ca.gov