CalPERS positive on Western European credit

CalPERS holds positive house views on several credit and opportunistic strategies.

The California Public Employees’ Retirement System maintains a positive house view on relative value opportunities in Western European credit markets, according to a private equity annual program review.

The report indicated that CalPERS is bullish on a number of low-risk strategies contained in its private equity allocation. The retirement system has a positive outlook on US and European opportunistic investments and US buyouts as well.

The retirement system had negative house views on venture, Latin American private equity and developing Asian private equity (excluding China). Outlooks on US credit-related investments, Western European buyouts, developed market growth and expansion and China were neutral.

It’s unclear how CalPERS’ house views have changed over time. The retirement system’s investment staff declined to comment on house views.  

Within its private equity portfolio, CalPERS maintains a 15 percent target allocation to credit related investments and 10 percent for opportunistic. The credit related portfolio had a net asset value of $4.5 billion as of 30 September. It has generated a 10 year return of 15.2 percent, according to the report.