CalPERS Investment Office Will Continue Cutting Costs in ‘16

At a board meeting Monday, CalPERS officials presented a “roadmap” for a more efficient and cost-effective portfolio, according to meeting materials released to the public.

The fund’s investment office cut over $200 million in costs in 2014-15.

The roadmap contains 36 separate initiatives, ranging from better expense tracking to increased diversity to a more holistic approach to ESG investing.

More from Ai-cio.com:

The roadmap, presented at an investment committee meeting Monday, is part of CalPERS’ 2020 Vision—a five-year effort focused on “simplifying the investment portfolio, simplifying the organizational structure, focusing on risk cost and complexity, and improving the level of collaboration within the investment office,” said Chief Operating Investment Officer Wylie Tollette.

The roadmap also pushes for enhancing the pension’s capital allocation framework, improving its investment platform and controls, and continuing to integrate investment beliefs into the investment process, including environmental, social, and governance (ESG) considerations. CalPERS’ latest ESG effort was signing the Paris Pledge for Action, a commitment to support and implement the climate change agreement reached at COP21.

The ultimate goal, Tollette said, is to manage the investment portfolio in a “cost-effective, transparent, and risk-aware manner in order to generate returns to pay benefits.”

[…]

In addition to improving fee structures, CalPERS said it has also made progress in fostering relationships with diverse portfolio managers. The pension also completed the initial printing of its carbon footprint and finished pricing and valuation procedures for all asset classes.

The roadmap presentation can be viewed here.

Photo by  rocor via Flickr CC License