Post by AlternativeSoft

Eight days ago, CalPERS switched off the investment framework that ran institutional investing for 50 years. On 1 July, the $625bn fund became the first US public pension to replace strategic asset allocation with a total portfolio approach. No more asset class buckets. No more silos. Every investment now competes for capital based on one question: what does it contribute to the whole portfolio? The evidence behind the move: funds running TPA outperformed SAA peers by 1.3% per year over a decade. At CalPERS' scale, that compounds to $8bn+ annually. Other major allocators are already moving in the same direction. The question is no longer whether TPA reaches the rest of the market — it's who is ready for it. Our full analysis, including what TPA means for allocators who aren't a $625bn mega-fund: https://lnkd.in/e24v8jcq #TotalPortfolioApproach #CalPERS #InstitutionalInvesting #PensionFunds #PortfolioConstruction #AssetAllocation #AlternativeInvestments #AlternativeSoft