SACRAMENTO—Having already signaled its intention to boost itscommercial real estate exposure, theCalifornia Public Employees' Retirement System nowis going even further. The Wall Street Journal andBloomberg both reported Wednesday that the nation's largest pensionfund plans to increase its CRE allocation by 27% over the nextyear, upsizing its exposure by as much as $7 billion.
As of July 31, CalPERS had allocated 8.7% of its $298-billionfund to CRE, or just under $26 billion, and later increased thattarget to 9.9%. It will rise yet again to 11% for fiscal 2016,Bloomberg reported.
The increase in allocation will bring the fund's CRE exposure toits highest level since before the financial crisis of 2008.However, the WSJ reported that CalPERS is taking adifferent tack this time.
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