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California Pension Fund May Change Benchmark for Private Equity

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The California Public Employees’ Retirement System, the biggest U.S. pension, may change the benchmark it uses to measure private equity performance as $31.3 billion in investments underperform.

The $294 billion pension, known as Calpers, currently uses a custom benchmark its staff designed based on global and U.S public equity plus 300 basis points. That benchmark is imprecise in measuring private equity performance and encourages riskier investments to meet the goal, officials said.