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
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.