Looks like some of the large pension funds want to make changes in their investment portfolios.  They want to focus on hedge funds and alternative investments.

Here's an update on New York's Pension Plan:

Comptroller Thomas DiNapoli yesterday said the pension fund grew by 2.6%, to $154 billion, in the fiscal year ended March 31. While some in the field say that performance is reasonably strong given the condition of the economy, it is nowhere near the 12.6% return that New York enjoyed the previous year, and they say the slowing growth may put a strain on the budget. Officials plan for 8% returns when formulating budgets, so the shortfall may force the government to make unexpected payments in order to meet its obligations to retirees.

In an effort to avert further pension shortfalls, Mr. DiNapoli said yesterday he wants legislators to allow him more flexibility in allocating the state's investments, a move that some have denounced as reckless. The law currently imposes a 25% limit on the amount of money he can put in "alternative investments," a category that includes real estate, commodities, private equity funds, and hedge funds.