The California Public Employees’ Retirement System (CalPERS) will use futures as part of its absolute-return strategy, Pensions & Investments reports. The pension fund has chosen to follow a proposal by the staff instead of one from its general consultant Wilshire Associates.
Wilshire had suggested the system to make an absolute-return allocation to increase returns and add a 2.5 percent allocation to hedge funds. CalPERS staff had recommended that instead of creating an allocation, the system should purchase equity market index futures to boost the entire portfolio’s return.
Click here for the story from Pensions & Investments.
