CalPERS to weigh investment shift

The board of the California Public Employees’ Retirement System, the largest U.S. public pension fund, will meet Monday to consider a plan to shift as much as $29 billion out of stocks and bonds and into private equity, real estate, commodities and other investments over time.

The board will consider a plan to cut the $261-billion fund’s bond stake to 19% of assets from 26% and pare its target stock allocation to 56% from 60%, which would be the lowest in 13 years, according to a meeting agenda on CalPERS’ website.

The fund’s investment team wants to make a bigger bet on assets that might better protect the fund against inflation. Those assets include infrastructure investments such as bridges and power plants, and commodities such as oil and timber.