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Administration March 10, 2003
CalPERS Allocation Change Proposal Goes Through
October 15, 2002 (PLANSPONSOR.com) - For the first
time in more than two years, the nation's largest pension
fund has approved a significant asset allocation shift of
funds from fixed income to alternative investments such as
private equity and real estate.
Reported by Fred Schneyer
The California Public Employees’ Retirement System (CalPERS) investment committee approved a 2-percentage point fixed-income cut to 26% while adding a percentage point to private equity and one to real estate to 7% and 9% respectively, according to a Reuters news report. The CalPERS proposal was first reported on Monday.
CalPERS’ 39% weighting in US equities and 19% for international equities were both unchanged.
Approval of the new allocation proposal for the $135-billion fund came as investors search for better returns to make up for portfolio losses caused by the stubborn bear markets.
Earlier this year, CalPERS began funding its highly anticipated $1 billion hedge fund program to diversify its alternative investment holdings.