Tuesday, March 26, 2013

A Gigantic Pension Fund Is Reportedly Considering A Change That Should Make Investment Managers Freak Out



Investment News reports that California CalPERS, the second biggest U.S. public pension fund, is weighing taking its massive $255 billion assets under management and moving it to an all-passive portfolio.

Why would this matter?   Well, it would matter a lot for active managers who receive management fees from CalPERS, Josh Brown, who runs the popular financial blog the Reformed Broker, points out on Twitter.   The California Public Employees' Retirement System already has more than half of its investible assets in passive strategies. CalPERS is expected to make the decision in about five months, the report said.

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