Pensions & Investments reported earlier this year that CalPERS is moving $500M of global fixed income investments to passive in-house strategies, saving millions in fees and boosting performance. The decision was reached after five-year rolling periods for internally managed passive strategies outperformed outsourced active management for traditional equity investments.
According to board member J.J. Jelincic, “it doesn’t make any sense to continue paying fees for underperformance.” A voice of reason on one of the nation’s largest endowment boards!
Is this the new “Yale Model”?
Bason Asset Management 