Key Takeaways from the CALAPRS General Assembly 2026

Handouts may be found in the members' only Info Hub under Resources.

The 2026 CALAPRS General Assembly on March 8-11th brought together public pension leaders, trustees, and industry partners from across California for several days of learning, collaboration, and forward-looking discussion at the Westin Carlsbad Resort & Spa. This year’s program explored the evolving investment landscape, governance challenges, and policy developments shaping public retirement systems, while also creating space for meaningful peer exchange and professional connection. From thought-provoking keynote conversations to practical educational sessions and valuable networking opportunities, the Assembly once again served as an important forum for sharing ideas and strengthening the community that supports California’s public retirement systems.

Monday, March 9

In the keynote session “If You Need It We Print It,” Jeffrey Gundlach, CEO of DoubleLine, joined moderator Stephen Gilmore, CIO of CalPERS, to discuss what he sees as a major shift in the investment landscape. Gundlach argued that the long era of falling interest rates has ended and investors are now in a new regime marked by sticky inflation, rising long-term rates, declining confidence in central banks, and a weaker role for the U.S. dollar as a traditional safe-haven asset. He suggested that many old assumptions about bonds and portfolio construction no longer apply, favoring a more flexible approach that emphasizes non-U.S. equities, local currency emerging market debt, shorter-duration fixed income, and real assets such as gold, commodities, TIPS, and land, while also warning of lingering risks in housing, private credit, banking, and insurance tied to years of ultra-low rates.  “The assumptions that guided portfolio construction for many years are being challenged by today’s environment,” said Mr. Gundlach.

5 Key Takeaways:  

• The market has shifted into a new regime of sticky inflation and rising long-term interest rates.
• Mr. Gundlach believes the U.S. dollar may be losing its traditional safe-haven status.
• He sees long-term U.S. Treasuries as carrying elevated risk in this environment.
• He favors broader diversification into non-U.S. markets and emerging market debt.
• He believes real assets like gold, commodities, TIPS, and land should play a larger role in portfolios.

In the next session “Change and Uncertainty – Betting and Hedging in a Low Conviction World,” Simona Mocuta, Chief Economist at State Street Investment Management, joined moderator Donald Pierce from the San Bernardino County Employees’ Retirement Association (SBCERA) to explore how investors should navigate a rapidly shifting global landscape shaped by geopolitical competition, policy shocks, technological disruption, and uncertain macro signals. Ms. Mocuta emphasized that today’s environment is defined by high uncertainty and low conviction, driven largely by the strategic rivalry between the U.S. and China, evolving global trade patterns, and the transformative—but unpredictable—impact of artificial intelligence. While she noted the U.S. economy remains relatively strong and global trade continues to grow despite geopolitical tensions, Ms. Mocuta urged investors to focus on resilient portfolio construction across multiple scenarios, rather than relying on single high-confidence forecasts. “In a low-conviction world, you have to build portfolios that are resilient across multiple scenarios.”  She also highlighted AI as the biggest underappreciated macro force, with the potential to dramatically reshape productivity, labor markets, and fiscal policy in ways that policymakers and investors are not yet prepared to fully manage.  

5 Key Takeaways

• The current investment environment is defined by “low conviction,” requiring investors to hedge across multiple potential economic scenarios rather than rely on a single forecast.
• U.S.–China strategic competition is a major driver of policy shifts, supply chain changes, and global economic realignment.
• Globalization is not disappearing but reorienting, with trade and supply chains becoming more regionalized and resilient.
• Artificial intelligence is the most underpriced macro force, with potential for massive productivity gains but also significant labor displacement and policy challenges.
• Investors should focus on macro resilience and diversified portfolio construction that can perform across uncertain geopolitical, economic, and technological outcomes.

Tuesday, March 10

In the session “Total Portfolio Approach Implementation,” Marcie Frost, Chief Executive Officer of CalPERS, joined Stephen Gilmore, Chief Investment Officer of CalPERS, to discuss how the organization is implementing a total portfolio approach to strengthen returns, improve transparency, and sharpen governance. The discussion emphasized that TPA is less a rigid formula than a mindset—one that shifts focus away from siloed asset-class buckets and toward optimizing the portfolio as a whole, with clearer accountability for risk-taking, performance, and decision-making. Frost highlighted that the change is designed to give the board better visibility into how the portfolio is performing relative to a simple reference portfolio, while also encouraging the investment team to use the system’s scale, liquidity, talent, and long time horizon more effectively. She also stressed that implementation will take time, but the goal is straightforward: better risk-adjusted returns, stronger collaboration across teams, and a more transparent framework for trustees, stakeholders, and members to evaluate performance.  “[Our] duty is our true north.  Every decision we make has to be in the best interest of the 2.4 million members who will receive a benefit.”

5 Key Takeaways

• The total portfolio approach is a mindset, focused on the overall portfolio objective rather than siloed asset-class targets.
• CalPERS is pursuing TPA to drive better risk-adjusted returns, stronger accountability, and improved governance.
• A new reference portfolio and dashboard will give the board clearer insight into total risk, active risk, performance, and portfolio direction.
• The model is intended to encourage more collaboration and constructive challenge across investment teams, rather than “filling buckets” by asset class.
• CalPERS believes its scale, liquidity, relationships, and talent position it to generate additional value above a simple public market benchmark over time.

In the session “Why Leading with Empathy Matters to Outperformance,” Anne Arlinghaus, Partner and Co-Head of Capstone in the Americas at KKR, joined Neil Sheth, Partner and Head of Global Research at NEPC, to discuss how leadership culture and empathy can directly influence business performance and investment outcomes. Drawing on KKR’s work with portfolio companies through its Capstone operational team, Ms. Arlinghaus explained that empathetic leadership—listening to employees, understanding their perspectives, and fostering trust—can strengthen engagement, improve decision-making, and ultimately drive stronger financial performance. She emphasized that organizations that prioritize communication, transparency, and a people-focused culture are better positioned to navigate disruption, retain talent, and execute strategy effectively. Rather than viewing empathy as a “soft skill,” Ms. Arlinghaus argued that it is increasingly a competitive advantage that helps organizations unlock productivity, resilience, and long-term value creation.  “If you want sustainable outperformance, you have to invest in people.  Leadership today requires understanding the human side of the organization.”

5 Key Takeaways

• Empathetic leadership can drive performance, improving engagement, collaboration, and execution across organizations.
• Leaders who listen and understand employee perspectives build stronger trust and more resilient teams.
• Culture and leadership style play a measurable role in business outcomes and value creation.
• Organizations that prioritize communication, transparency, and psychological safety are better equipped to navigate change.
• In today’s talent-driven economy, people-focused leadership is a strategic advantage, not simply a soft skill. 

In “Scale and Strategy: Insights from a Large and Small Pension System,” panelists Molly Murphy, CIO of the Orange County Employees’ Retirement Association, and Katie Girardi, Executive Director of the San Luis Obispo County Pension Trust, joined moderator Debby Cherney, CEO of SBCERA, for a thoughtful discussion on how pension systems of very different sizes approach investing, governance, staffing, and innovation. Murphy described how a larger plan benefits from scale, broader access, and a deeper internal bench, while also cautioning against over-diversification and the temptation to chase every “shiny” new idea. Girardi shared how a smaller plan can remain nimble and effective by relying on strong strategic partners, maintaining a functionally focused portfolio, and keeping governance simple and disciplined. Despite their differences in size and resources, both emphasized that success comes from clarity of mission, thoughtful governance, strong relationships, and portfolios built for resilience over the long term rather than complexity for its own sake.

5 Key Takeaways

• Large and small pension systems may use different structures, but both rely on discipline, governance, and long-term focus to achieve results.
• Scale creates advantages in access, staffing, and co-investment opportunities, but also increases the risk of over-diversification and complexity.
• Smaller systems can remain highly effective by leveraging trusted strategic partners and maintaining a simple, purpose-driven portfolio structure.
• Both speakers highlighted infrastructure as an area of strong interest, while emphasizing the need to match investment opportunities to each fund’s size, liquidity, and mission.
• Board education, delegation, and clear communication are essential, because trustees do not need to be investment experts but do need to make informed fiduciary decisions.

In “Taking the Wheel: Navigating Together Through Choppy Waters at the SEC,” panelists Omid Harraf of the Rock Center for Corporate Governance at Stanford and Heather Traeger, General Counsel and Chief Compliance Officer of the Teacher Retirement System of Texas, joined moderator Anya Freedman, Partner at Bernstein Litowitz Berger & Grossman LLP (BLB&G), for a timely discussion on how recent changes at the Securities and Exchange Commission are reshaping the landscape for institutional investors. The panel explained that in the past 14 months, investors have faced a more uncertain regulatory environment marked by reduced SEC enforcement, less bipartisan and independent decision-making, and weaker support for traditional shareholder protections. At the same time, the speakers emphasized that pension funds are not powerless: fiduciaries can respond by staying engaged, working collectively through comment letters and trade associations, strengthening contractual protections with managers and service providers, and using their capital and voice more strategically. The overall message was clear: public pension systems must remain informed, proactive, and coordinated to protect shareholder rights, manage emerging legal and cybersecurity risks, and advocate for stronger market integrity.

5 Key Takeaways

• Recent SEC changes have created greater uncertainty for investors, including reduced enforcement activity and less support for traditional shareholder protections.
• Public pension funds should view these developments as a fiduciary issue, since shareholder rights and access to information are material to investment oversight and risk management.
• Investors may need more self-help tools, including stronger contract provisions and closer scrutiny of managers, vendors, and service providers.
• Cybersecurity and data privacy remain critical priorities, and funds should monitor not only SEC developments but also requirements from other regulators across the broader landscape.
• Pension funds have significant influence when they engage collectively, whether through comment letters, trade associations, litigation, or direct advocacy with regulators and policymakers.
  

In “Left of Boom – A Cyber Threat Landscape Briefing and Lessons Learned to Improve Cyber Resiliency,” Supervisory Special Agent Brett Lally of the Federal Bureau of Investigation, in conversation with Kim Malm, Deputy Executive Officer of CalPERS, delivered a practical and urgent look at today’s cyber risk environment, emphasizing that organizations should focus on prevention, preparation, and resilience before a breach occurs rather than waiting until “boom” — the moment when systems fail, data is exposed, or ransom demands appear. Drawing on his FBI experience investigating cybercriminal groups, Lally explained that threat actors now operate like sophisticated businesses, using stolen credentials, social engineering, AI-enabled deception, vendor vulnerabilities, SIM swapping, and data extortion to target organizations and individuals alike. He stressed that retirement systems and their members are especially attractive targets, and that strong cyber hygiene — including identity controls, offline backups, incident response testing, vendor due diligence, and timely reporting to the FBI or IC3 — can materially improve outcomes. The session underscored that cybersecurity is no longer just an IT issue, but a business continuity, governance, and public trust issue that requires executive attention and ongoing vigilance.

5 Key Takeaways

• A “left of boom” approach means focusing on prevention, preparedness, and resilience before a cyber incident occurs.
• Stolen credentials, social engineering, and vendor weaknesses remain some of the most common ways threat actors gain access.
• Ransom payments no longer guarantee a clean resolution, as many attackers now use repeated or double extortion tactics.
• Offline backups, tested incident response plans, and executive-level involvement are essential to reducing operational disruption.
• The FBI can be a resource before, during, and after an incident, and rapid reporting can improve the chances of limiting losses.
  

Wednesday, March 11

In “Shifts Happen,” Rick Funston, CEO of Funston Advisory Services and former Deloitte National Leader for Governance and Risk Oversight, joined moderator Gregg Rademacher, CEO of the San Diego City Employees’ Retirement System (SDCERS), to deliver a compelling case that governance—not markets—is the primary driver of long-term investment success. Funston argued that while volatility, disruption, and “once-in-a-lifetime” events are becoming constant, the differentiator between outperforming and underperforming institutions lies in how boards respond under pressure. Through a “tale of two cities,” he illustrated how impatient systems—driven by short-term reactions, policy changes, and stakeholder pressure—consistently underperform patient, well-governed systems that stay disciplined, rebalance into downturns, and align around long-term beliefs. He emphasized that strong governance—clear delegation, policy continuity, stakeholder alignment, and disciplined decision-making—can generate measurable alpha over time, while poor governance leads to value destruction.  “It’s the set of the sails, not the gales, that determines the outcome.”  The session underscored that in an environment demanding immediate answers, the real challenge for pension leaders is maintaining patience, clarity, and consistency when it matters most.

5 Key Takeaways

• Governance—not markets—drives long-term outcomes, with disciplined systems outperforming those that react to short-term pressure.
• A “patient capital” approach—staying the course, rebalancing into weakness, and avoiding panic decisions—leads to better results over time.
• Short-termism and stakeholder pressure are the most common governance failures, often leading to poor timing and missed recoveries.
• Strong systems rely on clear investment beliefs, policy guardrails, and delegated authority to act decisively during market stress.
• Board education, alignment, and onboarding are critical to maintaining continuity amid turnover and evolving market conditions.

Closing out the conference, “Trustee Roundup,” featured panelists Marc Bracco, Chair of the Board of Trustees of SBCERA; Lisa Marie Harris, President of the Board of Administration of SDCERS; and Theresa Taylor, President of the Board of Administration of CalPERS, joined by moderator Katie Girardi, Executive Director of the San Luis Obispo County Pension Trust, for a candid conversation about what board service really looks like in practice—from onboarding and fiduciary duty to board dynamics, trustee education, and navigating public pressure. Each panelist emphasized that while trustees may come to the role through election or appointment, the responsibility quickly shifts to serving the entire system and all beneficiaries, not just the constituency that put them in the seat. The discussion highlighted the steep learning curve of pension governance, the importance of relationships with staff and fellow trustees, and the need to balance tough questions, political realities, and public scrutiny with sound fiduciary judgment. Across systems of very different sizes, the common message was that effective trusteeship requires humility, continuous learning, clear communication, and the discipline to keep the long-term interests of members and employers at the center of every decision.

5 Key Takeaways

• Trustees must quickly shift from representing a constituency to serving the best interests of the entire system and all beneficiaries.
• Board service comes with a steep learning curve, and strong onboarding, training, and committee experience are essential.
• High-functioning boards depend on relationships, trust, and communication with staff, consultants, and fellow trustees.
• Fiduciary duty requires trustees to make prudent decisions even when they are unpopular or politically difficult.
• Effective governance is strengthened through self-assessment, board education, and a willingness to listen, learn, and adapt over time.

As we reflect on another successful General Assembly, we extend our sincere appreciation to everyone who participated, shared insights, and helped make the event a valuable experience for attendees. CALAPRS would especially like to thank the 2026 General Assembly Planning Committee for their dedication to creating a timely and impactful program: Julie Wyne, CEO, Sonoma County Employees’ Retirement Association (Chair); Debby Cherney, CEO, San Bernardino County Employees’ Retirement Association; Katie Girardi, Executive Director, San Luis Obispo County Pension Trust; Kim Malm, Deputy Executive Officer, Customer Services & Support, CalPERS; and Gregg Rademacher, CEO, San Diego City Employees' Retirement System. Their leadership, time, and expertise helped ensure a thoughtful and engaging program for the entire CALAPRS community.

And, as always, the CALAPRS Board of Directors thanks the CALAPRS staff for their support in putting on a great conference!  We look forward to the 2027 General Assembly!