SACRAMENTO, Calif. (–Trustees of the California Public Employees’ Retirement System on Monday approved the allocation of an additional US$1 billion to hedge funds.

Half of the allocation is earmarked for funds of hedge funds, according to officials at the US$168 billion pension fund. The additional capital is expected to help the pension fund move more of its assets into non-traditional investment strategies that generate greater risk-adjusted returns, officials said.

The move to boost the allocation was widely anticipated (see ).

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