The largest pension scheme in the US is to move $3.6bn (€2.6bn), or 2%, of its assets into cash and raise its stakes in private equity, as it moves away from equities just as global markets have begun to rally.

The $184bn California Public Employees' Retirement System today announced it had reduced its target allocation to global equities, which had hurt investment performance over the past 12 months, by 7 percentage points to make up 49% of its portfolio.