160: Managing the Largest Public Pension Fund in the U.S. - With CalPERS CEO, Marcie Frost
Money Maze Podcast
Money Maze Podcast
4.8 • 216 Ratings
🗓️ 28 November 2024
⏱️ 59 minutes
🧾️ Download transcript
Summary
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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Transcript
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| 0:00.0 | Welcome to the Wall Street Shepard in the Money Race podcast. I'm Simon Brewer and along |
| 0:20.2 | with my co-founder, Will Campion. |
| 0:22.6 | We created this show in 2020 to explore and unravel some of the mysteries surrounding the investment and business worlds. |
| 0:31.5 | You need the luck to make a buck if you want to be good. |
| 0:46.3 | Episodes are available on audio via most podcast platforms and on video via our YouTube channel and we're active on all major social media platforms to stay up to date with every episode please |
| 0:52.2 | do sign up to our newsletter at MoneyMayspodcast.com. |
| 0:56.1 | And we'd like to thank you for listening if we could ask one favour. |
| 0:59.7 | We'd love you to tell a friend or colleague about us. |
| 1:02.9 | Thank you. |
| 1:04.8 | In 1932, the United States was in the grip of the Great Depression. |
| 1:10.4 | One in four Americans didn't have work, and nearly 9,000 banks had failed. |
| 1:16.0 | Franklin Roosevelt was elected for the first of his four terms as president of the US, |
| 1:20.6 | and a retirement system for state employees was established in California. |
| 1:24.6 | The retirement system grew into what is known as the California |
| 1:28.1 | public employees retirement system, aka Culpers. Today, it's America's largest public pension fund |
| 1:34.7 | managing over $465 billion. I'm here in London on a dull November afternoon, and it's 8am |
| 1:42.0 | in a sunny Sacramento state capital of California, and I like to |
| 1:46.2 | welcome its CEO, Marcy Frost. Welcome, Marcy. Well, thank you. It's good to be with you today. |
| 1:52.2 | I'd like to set the scene by just looking back, particularly at your early years, because you're in |
| 1:57.7 | public service. You know, it's not everybody's choice. |
| 2:01.0 | I wonder whether you came from a family where that was a conversation or whether it was |
| 2:05.2 | really serendipity. |
... |
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