By Arleen Jacobius, includes “CalPERS' board is expected to decide in September whether to remove alternative investments from its tracking-error calculation used to control risk. Deciding to do so would make sense, consultants say. When it comes to alternative investments, tracking error doesn't work because these asset classes lack an investible benchmark. … For private assets, tracking error limits can limit investment in assets that ‘don't look like the benchmark,’ reducing the value of investing in alternative investments, Mr. Delaney said.”