CalPERS' board on Wednesday approved a five-year strategic plan for the $237.5 billion pension fund, with key objectives focusing on improving its investment performance.
Initiatives for the California Public Employees' Retirement System's investment office include implementing programs to ensure that effective systems, controls and operations are in place to deliver target risk-adjusted investment returns.
The plan calls for funding risk to be actively managed through an asset-liability management framework, according to a posting on CalPERS' website.
The strategic plan did not provide details on how it will meet the objectives. CalPERS is in the process of implementing a risk-adjusted modeling system to better assess investment risk.
The plan comes in the face of lackluster investment returns for the Sacramento-based retirement system. CalPERS returned 1% for the 12 months ended June 30, far short of its 7.5% annualized assumed rate of return.
Brad Pacheco, a spokesman for the retirement system, said he could not immediately provide more specifics on the plan.
The strategic plan is available at www.calpers.ca.gov/eip-docs/about/press/pr-2012/aug/strategic-plan.pdf.
