Allocation

Equity investments returned 26.3 percent, fixed-income investments produced a zero return, and real estate investments returned 11.8 percent. The return was 1.0 percentage point higher than on the benchmark indices the fund is measured against.

The Board also adopted an asset allocation mix that lowers the CalPERS investment risk but largely keeps its investment strategy unchanged, holding the fund’s long-term assumed rate of return at 7.5 percent.

Global institutional pension fund assets in the 13 major markets grew by 9.5% during 2013 (compared to 6.9% in 2012) to reach a new high of almost US$32 trillion, according to Towers Watson’s Global Pension Assets Study released today.

This latest sub-fund on the MLIS UCITS platform, provides institutional investors with a capital-protected solution that uses core-satellite investment principles within a risk control framework to generate risk premium.

Investors start 2014 more optimistic about global growth prospects, especially for the U.S. but increasingly for Europe as well, according to the BofA Merrill Lynch Fund Manager Survey for January.