160: Managing the Largest Public Pension Fund in the U.S. - With CalPERS CEO, Marcie Frost

In 1932, the United States was in the grip of the Great Depression. One in four Americans were unemployed, nearly 9,000 banks had failed.

Franklin Roosevelt was elected to the first of his four terms as President of the United States, and a retirement system for state employees was established in California. It became the California Public Employees' Retirement System  (CalPERS). Today it’s America’s largest public pension fund, managing over $500bn (as of July 2024).

In this conversation, Marcie explains her journey to the helm of the organisation that is CalPERS today, and its over 2 million beneficiaries.

She discusses unfunded liabilities, and the balance between strategic and tactical allocation. She continues in reviewing their approach to active v passive in equity and fixed income. She discusses allocations to private equity and private debt, to hedge funds and real estate, and why their allocations to infrastructure are likely to increase. 

She reflects on the intense scrutiny of being a highly visible public entity, and how divestment is not their first response in industries like energy, even though sustainability is a key priority. 

She concludes with thoughts on culture, leadership, CalPERS being more nimble, and some great advice for females in finance.

​​The Money Maze Podcast is kindly sponsored by Schroders, IFM Investors, World Gold Council and LSEG.

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