FYI: You can learn a valuable lesson from the nation’s largest public-pension plan: Be careful how high you set your expectations. You might have to try to meet them.
The $358 billion California Public Employees’ Retirement System has been studying whether to adopt a new approach that would increase its private-equity holdings. The giant organization already has nearly $28 billion, or 8% of assets, in such funds, which invest in startups or in corporate buyouts. Calpers’ board voted in principle March 18 to move forward with a plan that could funnel up to $20 billion into such venture and buyout funds over the next decade.
Over the 10 years through June 2018, private equity was Calpers’ best-performing asset, returning an average of 9% annually, compared with 6.7% on public stocks. The median pension fund, meanwhile, earned an average of 8.8% on private equity and 6.8% on public stocks, according to Preqin.
Regards,
Ted
https://www.wsj.com/articles/the-dilemma-facing-a-358-billion-investing-giant-11553259611?mod=searchresults&page=1&pos=1
