Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Administration December 18, 2007
CalPERS Adjusts Asset Allocation
December 18, 2007 (PLANSPONSOR.com) - The California
Public Employees' Retirement System (CalPERS) Board of
Administration has adopted a new investment asset allocation
for its $250 billion portfolio to deliver optimum
risk-adjusted investment returns over the next three
years.
Reported by Rebecca Moore
According to the announcement, CalPERS will
continue to target 66% of its portfolio to public and
private equities combined. Fixed income and
inflation-linked assets combined will be 24%, and Real
Estate assets will be 10% – a 2% increase over the
previous allocation.
Specifically, global publicly-traded stocks, which were
60% of the total portfolio, will be adjusted to 56% and
will be evenly split between U.S. stocks and
international stocks, the announcement said. Private
equity, which held 6% of assets, will increase to
10%. Fixed Income’s target will decrease from 26%
to 19%, and the new inflation linked assets will have a
5% allocation.
CalPERS said its investment officers will use the targets to deploy capital over the next two to three years, when the Board tentatively is scheduled to again review and revise the allocation mix, based on market trends. There is no timeline for deploying funds under the new allocations.
The revised mix of assets does not significantly change the expected return or volatility of returns compared with the current CalPERS asset allocation, the announcement said.