The California Public Employees’ Retirement System has selected the asset allocation of its investment portfolio for the next four years. Of the four options under consideration, the board selected the allocation of assets that is most similar to the current portfolio.
The new asset allocation will be distributed as follows:
50 percent – Global Equity
28 percent – Fixed Income
13 percent – Real Assets
8 percent – Private Equity
1 percent – Liquidity
In addition, CalPERS’ target allocation to real estate is 11 percent. The real estate portfolio makes up $30.54 billion of the pension fund’s total market value ($346 billion).
“We’ve done significant analysis to get to this point,” said Henry Jones, chair of the investment committee. “After reviewing the Capital Market Assumptions, hearing from our stakeholders, and considering the recent change made last year in the discount rate, we f
