Presentation of the Partner

The California Public Employees’ Retirement System (CalPERS) is the nation’s largest defined benefit public pension fund, providing retirement benefit services to more than 1.8 million members. As of June 30, 2016, CalPERS provided ongoing monthly retirement benefit payments (benefit payments) to 650,943 retirees, beneficiaries, and survivors (benefit recipients). Roughly 85 percent of these benefit recipients resided in California. Defined benefit plans, such as CalPERS, not only provide benefits, but also contribute substantially to the local economy.

As of June 30, 2016, CalPERS’ investment portfolio totaled $295.1 billion, a decrease of 2.3 percent from the previous year. Despite these challenges, CalPERS continues to stimulate the California economy by providing benefit payments to more than 562,000 benefit recipients in California and investing $27.3 billion throughout the state (as of June 30, 2016). 

 

Presentation of the Partnership

Objectives

EDHEC-Risk is partnering with California Public Employees’ Retirement System (CalPERS), in cooperation with Professor John Mulvey from Princeton University, to help them build an integrated factor-based asset allocation and asset-liability management process. The Institute will explore, analyse and make recommendations related to the potential benefits expected from risk factor-based asset allocation, including the assessment of a translation mechanism between risk factor-based and asset class-based allocation.