the California Public Employees’ Retirement System on Monday moved to overhaul its battered real estate portfolio, steering away from high-risk deals.
The pension fund’s investment committee adopted a new strategic plan that emphasizes leased-up, income-producing commercial buildings. Going forward, CalPERS will pour far less money into speculative projects and land deals of the sort that cost it billions when the housing market collapsed. Lower risk means lower returns, however.
The pension fund moved heavily into residential real estate and commercial development during the property boom. It lost more than $9 billion in three years. Its real estate portfolio sat at $15.3 billion as of Nov. 30, the latest available statistic.
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