CalPERS trustees approved a pilot infrastructure program that could invest as much as $2.5 billion, confirmed spokesman Clark McKinley. The allocation, approved on Monday, will be part of a new inflation-linked asset class that will also include investments in commodities, inflation-linked bonds and timber. The exact allocation wont be determined until an asset-liability workshop in November. Staff will likely tap new inflation-linked investments on an opportunistic basis, said Mr. McKinley. A funding source was not identified.
Trustees at the $247.7 billion California Public Employees Retirement System, Sacramento, also reallocated $450 million in existing commodities investments and $123 million in existing infrastructure investments to include them in the new asset class.