CalPERS trustees yesterday approved: a real estate timber strategic plan; a $150 million commitment; and a cash strategy.
Trustees adopted an asset allocation range for timber investments of 10% to 20% of the fund's total investment in real estate. The fund has $1.2 billion in timberland.
A total of $150 million was committed to Fenway Partners Capital Fund II, which will invest in profitable but underperforming consumer product companies.
Under the new cash strategy, cash from the fund's domestic equity managers will be invested in State Street Global Advisors Stock Performance Index Futures Fund. It is expected to provide a higher return than State Street Global Advisors Short Term Investment Fund, where the manager's cash currently is invested. The $140 billion fund is based in Sacramento.