- CalPERS is the nation’s largest pension fund with $495 billion in assets.
- It looks at a 20-year time line on return for its assets and projects it needs a 7 percent annual return to make that work but that it’s current asset mix would produce a 6.2 percent return.
- Thus, it is modifying its asset mix to try and meet its target.
- It is increasing its target for PE to 13 percent from 8 percent.
- It is also adding an allocation of 5 percent of private debt.
- Finally, it is also borrowing $25 billion at what it hopes are low rates to invest for higher returns.
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