SACRAMENTO, Calif. (Reuters) – The board of Calpers, the biggest U.S. public pension fund, voted on Monday to let its investment staff increase its asset allocation for private equity and venture capital investments and to reduce its stock holdings.
The board of Calpers, the $183 billion California Public Employees’ Retirement System, voted to raise the fund’s Alternative Investment target allocation for private equity and venture capital investments by 4 percent to 14 percent of its recommended portfolio allocation.
“Essentially, it’s to accommodate new opportunities and for unfunded commitments,” said Brad Pacheco, a spokesman for Calpers, one of the most influential U.S. money managers.
Calpers board member Dan Dunmoyer said the new allocation target for the fund’s Alternative Investment program reflects a “cautious” approach.
“We need to cautious, but we also need to be diligent to take opportunities,” Dunmoyer added.
Calpers’ board reduced the fund’s Global Equity target allocation to 49 percent from 56 percent of its portfolio allocation.
The target allocation for the fund’s cash was increased to 2 percent from zero and the target allocation for its fixed- income investments was raised to 20 percent from 19 percent.
The fund’s real estate allocation was held steady at 10 percent and its allocation for inflation-linked assets was left unchanged at 5 percent. (Reporting by Jim Christie; Editing by Theodore d’Afflisio)