Discussion Question:

Go to www.calpers.ca.gov/page/investments (the website of the California Public Employees Retirement System). How are the fund’s assets allocated? What is the fund’s current market value? Look at the fund’s most recent investment report. What is the fund’s rate of return? Has its rate of return increased or decreased in the last year? What is the fund’s philosophy of corporate governance? What governance actions has it taken recently?

Student A:

The CPERS assets are divided up between Global Equities, Private Equities, Global Fixed Income, Liquidity, Real Estate, Inflation Sensitive assets, Infrastructure and Forestland, and other–multi-asset class and overlay, transition, and plan level assets. This was found on this page. The current total market value is $358.47 billion, with a breakdown by asset allocation in the previous link. The most recent investment report states that they have obtained a preliminary 8.6 percent investment return for '17-'18. In the '16-17' period, they obtained a 11.2 percent investment return, meaning the rate of return has decreased. For corporate governance, the fund lists various bits and pieces in its strategic outlineand business outline. Their main goals for coming years revolve around fund sustainability, health care affordability, risk management, talent management, and reducing the complexity of their organization. Recently, in line with the health care affordability goal, CPERS negotiated a 1.16 percent premium increase, which is the lowest health premium increase CPERS has negotiated in at least 20 years. This can be read here.

Student B:

The California Public Employees Retirement System holds a number of assets. They include: US and international public equities, foreign currencies, derivative exposure, US and international bonds, commodities and inflation-linked bonds, infrastructure and forestland, US treasury securities with maturities of less than ten years, US and international investments, private equity, real estate.

The CalPERS total market value is $358.47 billion. Its rate of return for the 2017-2018 fiscal year was 8.6%, which is a decrease from 11.2% the previous year.

CalPERS corporate governance is focused on long-term value creation concerned with financial, physical, and human capital. It aims to work with long-term shareowners and companies that share similar interests. A governance action the organization has taken recently is a diversity initiative, specifically for Board Directors. The initiative is concerned with a diversity of knowledge and skills among board members, as well as address/support those of historically underrepresented groups.

Please submit them in two different files.