Tallahassee Pension Plan adds private equity, timber and increases real estate

Tallahassee (Fla.) Pension Plan is adding new target allocations to private equity and timber, and increasing its target to real estate, said Kent Olson, the city’s deputy treasurer-clerk.

The changes follow an asset allocation study by Segal Rogerscasey, the $1.3 billion pension fund’s investment consultant. The new allocation was approved by the city’s sinking fund commission, which oversees the pension fund, at its meeting Wednesday.

The new allocation creates targets of 5% each to private equity and timber, and increases the target to real estate to 15% from 10%, Mr. Olson said. Staff and Segal Rogerscasey have begun interviews with some private equity and real estate managers in anticipation of the new allocation. Additional invitation-only searches for real estate and timber are likely to occur in the first six months of 2014, he added.

The target to domestic equity is decreased to 40% from 48%, and the target to domestic fixed income is decreased to 20% from 27%. Mr. Olson said no managers will be terminated.

Targets to international equity and emerging markets equity will remain unchanged at 10% and 5%, respectively.