The results of an emerging manager benchmarking study CalPERS requested shows the pension fund‘s emerging manager allocations significantly exceed its peer group.
In late 2013, CalPERS hired Callan Associates to conduct the study for “similar U.S. public funds.” Seven of 11 funds responded to the survey, providing asset allocations to emerging managers across asset classes.
CalPERS’ 19% private equity emerging manager allocation was 70 basis points higher than the peer group average. The fund’s 18% public equity allocation to emerging managers outpaced peer averages by 12 percentage points, while its 16% allocation in hedge funds was up 10 percentage points over the peer averages.
Of CalPERS’ externally managed assets, 13.3% are done so by emerging managers. The average for the peer group was 5.9%.