CalPERS expects to search for a group of commodities, infrastructure and forestland consultants by the end of June, according to documents presented at an investment committee meeting Monday. Staff expects to hire consultants by the end of September. CalPERS targets 1.5% each of the total portfolio in commodities and infrastructure, and 1% in forestland.
The investment committee of the $245.4 billion California Public Employees Retirement System, Sacramento, also approved a staff recommendation to double the size of its credit enhancement program to allow up to $10 billion in commitments. Only $2 billion has been committed since the program began in 2005, but the credit crunch has driven demand for borrowers to access debt backed by CalPERS strong credit rating.
Separately, the investment policy subcommittee approved an infrastructure policy, confirmed spokesman Clark McKinley. The new policy will go to the investment committee for a final vote Aug. 18. Labor unions put pressure on the system to develop a labor-friendly policy. New wording was added to ensure that no public-sector workers would lose their jobs as the infrastructure projects were privatized, provided CalPERS meets its fiduciary responsibility, Mr. McKinley said.