CalPERS mulls more than doubling bond allocation - Bloomberg
Seeking Alpha
Published Nov 13, 2017 10:19AM ET
CalPERS mulls more than doubling bond allocation - Bloomberg
- According to a presentation set to take place today, the country's largest pension fund is considering taking its fixed-income allocation target from the current 19% to as high as 44%.
- Equities could be cut to as low as 34% from the current 50%. No surprise here, stocks have been Calpers' best-performing asset class this year with a return of nearly 20%. The fund overall is up about 13%.
- Equities may look pricey after an almost nine-year bull market, but raising the fixed-income allocation would mean a cut in the fund's average expected return to perhaps 6.5% from 7%. A lower target would mean higher contributions in order to fund obligations - should go over well with voters.
- The allocation is to be voted on in December.
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