Citing cost and participant preference, CalPERS has gone 100% passive in their $1.64 billion supplemental income plans. State Street was chosen to manage the new investments covering U.S. and international equities, short and intermediate bonds and real asset strategies, replacing The Boston Company Asset Management, Pyramis and PIMCO.
Most striking was the move from active to passive in their custom TDFs, going from 52 to 6 BPs. Earlier in the year, CalPERS considered moving many if not all of its massive funds to passive strategies.
