A CalPERS-sponsored study on treasury management finds that only 38% of pension funds responding said they are confident in their ability to accurately forecast cash needs for private investments beyond 30 days.
The highest forecasting confidence level was two weeks out (15 days) – at 31%, while 13% of respondents said they were not confident at all when projecting cash flows related to private investments, such as capital calls.
The study, conducted during the third and fourth quarters of 2014 – is based on surveys and interviews with peers of the California Public Employees' Retirement System, in which the “majority of the participants have a funding status over 80%” and roughly half of the funds have a cash allocation target between 1% and 2%.
