CalPERS’ Stephen Gilmore on the total portfolio approach

The board of CalPERS has approved a momentous structural change that gives the $556 billion fund a single reference portfolio for judging performance, delegated authority to investment staff to construct the portfolio, and a simplified measure of success. The fund’s chief investment officer, Stephen Gilmore, has been behind the fund’s shift to this approach which he says can add 50 to 60 basis…