Post by Responsible Asset Owners Global Symposia (RAOGlobal.org)

Has CalPERS just declared the end of Strategic Asset Allocation? The world's largest public pension fund has become the first major U.S. public plan to abandon traditional asset allocation in favour of a Total Portfolio Approach. This isn't just a change in investment strategy. It's a fundamental rethink of: 🔹 How portfolios are constructed 🔹 How investment teams are organised 🔹 How performance is measured 🔹 How governance and incentives should work For years, sovereign wealth funds and leading global investors have argued that managing a portfolio as one integrated whole leads to better long-term outcomes. Now, CalPERS has become the industry's biggest live experiment. Will this prove to be the future of institutional investing – or a cautionary tale? As geopolitical fragmentation, technological disruption and increasingly interconnected risks challenge traditional investment models, perhaps the bigger question is: If Strategic Asset Allocation is no longer fit for purpose, what else in our industry are we accepting simply because "that's how it's always been done"? https://lnkd.in/eRktQxAv #CalPERS #AssetAllocation #TotalPortfolioApproach #Pensions #InstitutionalInvesting #AssetOwners #SovereignWealthFunds #PrivateMarkets #Governance #LongTermInvesting #RAOEurope26 #CapitalAllocation #InvestmentStrategy #Leadership #Innovation