CalPERS Goes Live With Total Portfolio Approach: AlternativeSoft Publishes Analysis for Allocators

CHICAGO - EntSun -- AlternativeSoft, the institutional investment analytics platform trusted by 150+ institutions managing over $1.5 trillion, has published an analysis examining the California Public Employees' Retirement System's transition to a total portfolio approach and its implications for institutional allocators globally.

On 1 July 2026, CalPERS became the first US public pension fund to replace the strategic asset allocation model with a total portfolio approach, applying the new framework to its $625.7 billion portfolio. Under TPA, investment decisions are assessed by their contribution to the entire portfolio rather than by individual asset class targets, measured against a 75/25 equity-bonds reference portfolio with a 400 basis point active risk limit.

A March 2025 study of 26 large funds employing TPA, cited in CalPERS board materials, found their investments outperformed those using the strategic asset allocation model by 1.3% per year over a ten-year period. The approach is already used by Singapore's GIC, Denmark's ATP, Australia's Future Fund, CPP Investments and Ontario Teachers' Pension Plan.

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The AlternativeSoft analysis examines why the strategic asset allocation framework that shaped institutional investing for five decades is being re-evaluated, the five analytical capabilities any institution needs to run a total portfolio approach, and how hybrid TPA frameworks make whole-portfolio investing accessible to mid-sized pension funds, endowments and family offices without the internal infrastructure of a mega-fund.

The analysis identifies unified data across public and private assets as the foundational requirement, alongside factor-level attribution, a defined reference portfolio, whole-portfolio scenario stress testing, and governance frameworks that support dynamic allocation.

AlternativeSoft provides institutional allocators with these capabilities across 500,000+ funds in a single cloud platform, and has received the Hedgeweek Award for Best Risk Management for four consecutive years.

Full analysis: http://www.alternativesoft.com/tpa-end-of-silo-2026.html (http://www.alternativesoft.com/tpa-end-of-silo-2026.html%60)