UPDATE 1-Calpers lowers AllianceBernstein, PIMCO exposure

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SACRAMENTO, Calif., Nov 16 (Reuters) - The board of Calpers, the biggest U.S. public pension fund, approved on Monday its staff's recommendation to reduce its exposure to fixed-income investments managed by AllianceBernstein Holding LP and PIMCO.

The board of Calpers, the $200 billion California Public Employees' Retirement System, voted to lower the fund's fixed-income exposure through AllianceBernstein (AB.N) to $500 million from $978 million and through PIMCO to $100 million from roughly $203 million.

The reductions will affect international fixed-income funds under management at AllianceBernstein and U.S. high-yield fixed-income assets under management at PIMCO.

At the same time, the Calpers board approved one-year contract extensions with AllianceBernstein and PIMCO.

Calpers staffers recommended the fund sell $8 billion of assets from its global fixed-income plans over the next 12 months to achieve a 20 percent allocation target for them.

The fund's allocation target in September for its global fixed-income asset class was 24 percent. (Reporting by Jim Christie, Editing by Chizu Nomiyama)