Money Maze Podcast 160: Managing the Largest Public Pension Fund in the U.S. - With CalPERS CEO, Marcie Frost
Nov 28, 2024
Marcie Frost, CEO of CalPERS, leads America’s largest public pension fund, managing over $500 billion in assets. She shares her inspiring journey in public service, emphasizing mentorship and networking. The conversation dives into asset allocation strategies and the balance between sustainability and returns. Marcie discusses the fund's increasing focus on infrastructure investments and the challenges of public scrutiny. She offers valuable advice for women in finance, highlighting the importance of organizational culture and effective leadership.
AI Snips
Chapters
Books
Transcript
Episode notes
Private Equity Strategy
- CalPERS maintains conviction in private equity, aiming for returns 150 bps above public markets.
- They have shifted towards mid-market investments and co-investments to reduce fee drag.
Sustainable Investing Strategy
- CalPERS views ESG and climate as long-term risks rather than short-term performance drivers.
- They prioritize data-driven decisions and aim to educate stakeholders about responsible investment principles.
Engagement over Divestment
- Divestment is a last resort; CalPERS engages with companies to promote the energy transition.
- They are investing in transitioning companies, accepting temporary emissions increases as part of the process.
