CalPERS approves new investment policies

The Sacramento-based public pension fund is implementing multiple news policies for its private investments.

California Public Employees’ Retirement System (CalPERS) has approved multiples changes to its private investment policies.

The first approval is the launch of CalPERS Direct, which is expected to establish in the Q1 2019. It will consist of two funds. One will focus on late-stage investments in technology, life science and healthcare while the other will concentrate on long-term investments in well-established businesses.

CalPERS also merged the investment categorisations from three different classes (top quartile, second quartile and emerging manager) into one single “fund” group.

For the investment limits, investment ceiling for investment directors and chief investment officer will amount to $500 million and $1 billion respectively. In addition, the limits will be no longer stated as the percentage of the total size, instead, dollar term will be stated.

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