Wilshire, Maketa and staff report: private markets steady, Wilshire flags high equity valuations; board debates total‑portfolio reporting and liquidity

Consultants and staff gave trustees a trust‑level review on March 17, 2025 that highlighted three linked themes: (1) Wilshire warned that U.S. equity valuations are elevated and projected lower expected returns, (2) Maketa reported that CalPERS’ four private‑market asset classes have generally met long‑term return expectations, and (3) staff outlined how a move to a total‑portfolio approach (TPA) would change reporting, governance and risk‑measurement while investment‑treasury staff described expanded liquidity and financing capabilities.

Tom Tote of Wilshire told trustees that equity valuations were high and that valuation-driven returns are likely to be muted going forward; he said the equity risk premium is currently low and that starting valuations are often predictive of future realized returns. Wilshire’s capital‑market assumptions were summarized as…