CalPERS staff proposed revamping the asset mix for its $716 million long-term care fund, boosting international equities by 10 percentage points to 20% of assets, while lowering domestic equities to 42%, from 52%. Domestic bonds and cash equivalents would remain at 37% and 1%, respectively.
The staff of the $149 billion California Public Employees Retirement System, Sacramento, embraced recommendations made by consultant Wilshire Associates. In its study, Wilshire officials wrote non-U.S. stocks are taking leadership from U.S. stocks primarily because of the weakening U.S. dollar and concerns about U.S. accounting practices, which are causing global investors to believe that U.S. earnings are overstated and the market is overvalued.
The investment committee will consider the recommendation at its next meeting, June 17.