CalPERS is the nation's largest pension fund with $495 billion in assets.

It looks at a 20-year time line on return for its assets and projects it needs a 7 percent annual return to make that work but that it's current asset mix would produce a 6.2 percent return.

Thus, it is modifying its asset mix to try and meet its target.

It is increasing its target for PE to 13 percent from 8 percent.

It is also adding an allocation of 5 percent of private debt.

Finally, it is also borrowing $25 billion at what it hopes are low rates to invest for higher returns.