CalPERS board OK asset allocation changes

The CalPERS board today approved an asset allocation that increases its private equity and real estate allocations to 10% each, from 6% and 8% respectively, and adds a 5% allocation to an inflation-linked asset class. Some board members expressed concern about the inflation-linked allocation, which comprises timber, commodities, inflation-linked bonds and infrastructure, wondering if a lower initial allocation would be appropriate since the fund has not previously invested in infrastructure. Farouki Majeed, senior investment officer for asset allocation management at the $259.5 billion California Public Employees’ Retirement System, Sacramento, said staff is looking at a three-year timeframe for implementation. CIO Russell Read said implementation should be discussed in a closed session.