Aug 10 The California Public Employee Retirement
System, the largest U.S. public pension fund, is considering
major changes to its portfolio as it attempts to stay away from
riskier investments, the Wall Street Journal reported on Sunday.
Calpers is mulling whether to exit or cut back its
investment in commodities, company stocks and hedge funds, the
newspaper reported, citing anonymous sources. Calpers had assets
totaling $290.5 billion as of April 30, 2014, according to its
website, and any move it makes to change its investment strategy
could influence other state and local pension funds.
A representative for Calpers did not immediately respond to
a request for comment.
Calpers' top investment executives including Chief
Investment Officer Ted Eliopoulos are discussing whether to make
the changes and have not made a final decision, according to the
newspaper. Calpers' board has not been told about the talks,
sources told the Wall Street Journal.
The newspaper said one of the biggest changes the fund is
considering is potentially eliminating investments in indexes
for commodities, including energy, gold and metals. The fund is
also thinking about shifting its $55 billion investment in
company stocks to broader investments in countries or sectors,
the report said.
The report also said that Calpers may get rid of some of its
highly paid external investment managers.
Calpers, which has a $4.5 billion hedge fund, is also trying
to figure out options for part of the portfolio.
(Reporting by Liana B. Baker and Dan Burns; Editing by Eric