New Hampshire Retirement System changes bond, alternatives target allocations

New Hampshire Retirement System, Concord, will reduce fixed income and increase alternatives under a new target asset allocation approved Tuesday, confirmed Marty Karlon, spokesman for the $5.8 billion pension fund.

Fixed income will be cut to 25% of the pension fund's assets from 30%, and alternatives will increase to 15% from 10%.

The asset allocation change is expected to be phased in over the next three to seven years. There are no plans for any searches or manager terminations for now, Mr. Karlon said in a telephone interview.

The target allocations will remain the same for domestic equity, 30%; international equity, 20%; and real estate, 10%. Within alternatives, the target allocations are 5% each private equity and private debt, 3% opportunistic and 2% hedge funds. There were not specific breakdowns previously, Mr. Karlon said.

The current asset allocation is 42.8% domestic equity, 27.8% fixed income, 18.3% international equity, 8.7% real estate and 2.4% alternatives.

Investment consultant NEPC assisted.