Mega Investors Consider Ditching Silo Investing for Total Portfolio Approach
Many of the world’s largest institutional investors are shifting their investment strategy to a total portfolio approach and away from siloed investing, according to a report from the Chartered Alternative Investment Analyst Association.
Among them could soon be the $556.2 billion California Public Employees’ Retirement System, the largest pension fund in the U.S., which will decide in November whether to adopt the investment governance model. The philosophy behind the total portfolio approach, or TPA, is that investment decisions should be based on their contribution to the entire portfolio, rather than the strategic asset allocation approach of trying to meet asset allocation targets.
The CAIA…
