CalPERS 'Not Too Concerned' About Software Exposure, CEO Frost Says

• CalPERS is 'not too concerned' about software exposure due to a diversified private credit book and high-quality managers.
• The fund posted strong private equity (14.3%) and private credit (12.8%) returns last fiscal year, attributing success to manager selection, fee reduction, and co-investments.
• CalPERS maintains a strong liquidity position and has conviction in its private markets allocation for the next 4-6 years, with plans to expand into emerging managers and venture capital.
• The fund is on track for its $100 billion sustainable investments commitment by 2030, focusing on energy transition, climate solutions, and supporting companies moving in the right direction.
• CalPERS is actively exploring AI for internal operational efficiencies, productivity, and gaining better insights for investment decisions, engaging with public company CEOs on their AI strategies.

CalPERS CEO Marcie Frost discusses the pension fund's strong liquidity position and confidence in its private markets allocation, including private credit and private equity, despite recent market turmoil. She highlights successful portfolio recalibration, fee reduction, and strategic investments in emerging managers, venture capital, and climate solutions. CalPERS is also exploring AI for operational efficiency and investment insights.