Total Portfolio Approach Coming to $600 Billion CalPERS Fund (1)

The largest public pension fund in the US has voted to overhaul how it manages almost $600 billion in assets.

CalPERS, the California Public Employees’ Retirement System, agreed on Monday to adopt a method of investment known as a Total Portfolio Approach. That’s a system which ditches traditional asset-allocation targets and instead judges every investment on its role within the whole portfolio.

The move, set to take effect on July 1, “will increase transparency and give staff more flexibility to capitalize on a variety of market opportunities,” the $589 billion fund said in a statement.

TPA has ...