November 16, 2017
CalPERS’ board and investment staff is considering a new asset allocation that will span the coming four years. The current asset allocation is for 50% global equities, 19% fixed income, 9% real estate, 8% each private equity and inflation sensitive assets, 4% cash and 2% infrastructure/forestland.
Next month, the board is expected to approve a portfolio from one of four choices for the four-year period starting July 1, 2018. The four options include global equity allocation ranges from 34% to 59%, and fixed income ranges from 19% to 44%.
The options include a 13% allocation to real assets and 8% to private equity. Investment staff considers both asset classes capacity constrained, and does not believe it is feasible to increase the size of the asset classes and still find quality investments.
For comments, questions or concerns, please contact Dennis Kaiser