US – CalPERS, the largest US pension fund, has bought Californian vineyards for $26m (€21.7m) – looking for a return above 16%.

The $186bn California Public Employees' Retirement System said it has bought properties in Napa and Sonoma counties in a joint venture with Meriwether Farms, which invests in vineyards.

The 1,600-acre (647.5-hectare) Napa property, bought for $23.5m, includes 135 acres for Cabernet Sauvignon, Cabernet Franc, and Merlot wine grapes. The 248-acre, $2.5m-Sonoma purchase includes 55 acres of Cabernet Franc and Merlot vineyards.

It said: “The projected investment return after fees is 16-17%.”

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