CalPERS staff is calling for boosting allocations to real estate and private equity by one percentage point each, to 9% and 7% of assets, respectively, while trimming its global bond portfolio to 26%, from 28%. U.S. and international equities would remain constant, at 39% and 19%, respectively.
The staff of the $136 billion California Public Employees Retirement System, Sacramento, also seeks greater flexibility in making tactical asset-mix shifts. The staff called for ranges of 60% to 70% for stocks, 21% to 31% for fixed income and 7% to 11% for real estate. The staff may also suggest changes of up to two percentage points in target allocations.
Consultant Wilshire Associates recommended boosting foreign stocks to 20% of assets, while reducing domestic stocks to 37% and trimming fixed income by only one percentage point. Recommended real estate and alternative increases mirrored the CalPERS staff recommendation.
The proposed changes will be discussed by the investment committee Oct. 15.