Calpers Gave Up $900 Million Since Lowering Allocation
- Pension system started to reduce equity exposure in September
- Board expects 5.8% annual returns until new allocation chosen
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It has cost the California Public Employees’ Retirement System about $900 million since September to reduce its exposure to stocks and private equities as the largest U.S. pension fund sought to reduce risk in its portfolio.
“To date we have actually experienced, and this is more by coincidence than by anything else, about a 30 basis point reduction in return to date based on the interim asset allocation,” Ted Eliopoulos, chief investment officer for the $309.7 billion system, said Monday in Sacramento.