CalPERS increases allocation to real assets portfolio

The $465 billion California Public Employees’ Retirement System (CalPERS) has plans to increase its real assets allocation to 15 percent from 13 percent.

The increase is part of the CalPERS Board of Administration’s selection of an overall new asset allocation mix that will guide the fund’s investment portfolio for the next four years, while at the same time retaining the current 6.8 percent investment return target.

“The actions we’ve taken today provide the framework for the long-term success of the CalPERS fund,” said Theresa Taylor, chair of the investment committee. “The portfolio we’ve selected incorporates a diverse mix of assets to help us achieve our investment return target of 6.8 percent. And by adding 5 percent leverage over time, we’ll better diversify the fund to protect against the impact of a serious drawdown during economic downturns.”

The full announcement can be