CalPERS’ global public equity team reported that it has rebuilt its active allocation and produced meaningful dollar value added (DVA) since the board authorized reintroduction of active risk in November 2022.

Samiso (Simiso) and colleagues told trustees that active public equity allocations rose from roughly 8% to 32% over a three‑year period following a formal restart of active risk. The team said its public equity program generated about $800 million of dollar value added in the most recent fiscal year and approximately $1.5 billion over three years. The portfolio was $215 billion at June 30, staff said, with 82% in cap‑weighted strategies and 18% in factor‑weighted strategies, and about 68% of global public equity assets managed passively overall.

Staff framed the expansion of active risk as a disciplined, staged process. The team formed a portfolio design and analytics group to improve manager‑selection metrics, portfolio construction and measurement of persistent skill. “When implemented effectively, active risk and alpha go hand in hand,” team members said as they showed information ratios and excess‑return analyses. Wilshire’s annual review upgraded the program to the second decile, citing team stability, stronger analytics and the growth of active management.

Trustees asked about governance topics that intersect with public‑equity stewardship. Staff said equity engagement and proxy voting remain core tools: they reported voting at nearly 10,000 meetings during the year, supporting climate and human‑capital proposals at many companies and conducting engagements across sectors. The team also described new collaborations with sustainable‑investment and fixed‑income staff to coordinate engagements that affect bond and equity positions.

Ending: The team said it will continue to strengthen analytics, extend automation where appropriate and pursue manager and strategy refinements while maintaining a long‑term orientation to active management.