FTSE Wins Consolidated CalPERS Benchmark Assignment

FTSE, the global index company, announced that the California Public Employees Retirement System (CalPERS), the US’s largest public pension fund with $170 billion in assets, will use a customized version of the FTSE All-World Index as their primary international equity portfolio performance benchmark.

“The decision by CalPERS to adopt the FTSE All-World index as their international benchmark is a major win for FTSE in the US market and follows other major mandate success we have recently had in Asia and Europe,” said Jane Staunton, President of FTSE Americas. “CalPERS’ endorsement is indicative of the growing importance of FTSE indices as an international, global benchmark for pension funds and investment managers throughout the North American marketplace.”

CalPERS has adopted the FTSE benchmark for both the passive and active international funds, which amount to approximately $35 billion. Around $26bn is passively managed with the remaining $10 billion in actively managed funds. CalPERS previously used a hybrid FTSE/International Finance Corporation benchmark for its passive portfolio and MSCI for its active mandate. The move to a consolidated benchmark was signaled at CalPERS’ October 1999 investment committee meeting, when the CalPERS investment staff recommended switching managers. The transition to the FTSE All-World will extend over the course of several months.