CalPERS investment leaders outline priorities, cite recent public-equity gains

Steven Gilmore, chief investment officer at the California Public Employees Retirement System (CalPERS), opened the session saying the investment team's core responsibility is to "invest the portfolio" to produce strong risk-adjusted returns that will allow the system to pay future pension benefits for about 2.4 million members. "The most important thing that the investment team does... is to invest the portfolio," he said.

Simiso Nzima, head of global public equity, said CalPERS manages roughly $220 billion in public-equity assets and has outperformed its index by 25 basis points annually over the past five years, which he characterized as approximately $2.4 billion cumulatively over that period. "That goes a long way in... securing the retirement benefits of our CalPERS members and their beneficiaries," Nzima said.

Anton Orlich, head of private equity, described private equity as concentrated ownership stakes that often pursue longer-term horizons and are "less susceptible to the noise of the public markets," a characteristic he said can help the fund seek higher returns. Recelle See, investment director in private debt, noted her 25-year tenure and stressed the role of teamwork in managing CalPERS' private-debt investments.

Juan Gaviria, investment director for real assets and infrastructure, said investments in transportation and power-generation projects can deliver everyday improvements—better road connectivity, improved airport experiences and a greener, more resilient grid. "When we invest in transportation, we improve road connectivity... if we invest in power generation and battery energy storage, we make our grid more resilient, greener," Gaviria said.

Peter Cashion, who leads sustainable investment, underscored climate solutions and the fund's interest in emerging diverse managers. "We target investing in climate solutions... a second area is emerging in diverse managers," Cashion said, adding that newer managers focused on niche strategies have shown potential to generate outperformance.

Bashar Zackariah, head of emerging market research, said his team evaluates economies and debt securities across emerging markets and advises on where CalPERS should engage or avoid. "Being here for 24 years, I've seen countries going from very weak to strong," he said.

Tamara Sell, a CalPERS staff member who identified herself as a future pensioner, said her personal stake in the fund motivates her work: "I feel that I have a personal and professional interest in the success of the fund." The session was framed as introductions and a high-level overview of investment priorities rather than a forum for policy decisions or votes.

The presentation emphasized the dual aims of managing risk and pursuing returns to preserve member benefits, while highlighting specific asset-class approaches: public-equity stewardship with measured outperformance, longer-horizon private-market strategies, targeted infrastructure investments, climate-focused allocations and active emerging-market research. No formal actions or votes were recorded during the session; remarks were introductory and descriptive.