CalPERS boosts hedge, governance fund targets

CalPERS’ trustees approved increased hedge fund and corporate governance fund allocations, totaling up to $15 billion in new investments. At its meeting Monday, the board increased each target to 5% of the $156.5 billion global equity portfolio, plus or minus three percentage points each, up from 3%. The $247.9 billion California Public Employees’ Retirement System, Sacramento, currently invests $5.1 billion in corporate governance funds and $5 billion in absolute return funds. Funding will come from the passive global equity portfolio. There is no timeline for seeking new investments, said spokesman Clark McKinley.

CalPERS staff also committed $100 million to the Green Fund with Hines Group, a real estate fund that will focus on investing in buildings certified for energy efficient design.