St. Louis Public School Retirement System prepares for asset allocation overhaul

St. Louis Public School Retirement System's investment committee approved 2017 searches for global multisector fixed-income, private debt and private equity managers.

The $811 million pension fund's board will vote on the changes at its Feb. 27 meeting. The investment committee approved the searches at its Feb. 16 meeting as well as changes in the pension fund's target allocations, according to committee meeting minutes.

The global multisector search would begin in March, with finalist interviews in April. The private debt interviews would take place in November, and private equity interviews in December.

A 5% global multisector fixed-income target was created last year, replacing a 5% high-yield target. The committee on Feb. 16 recommended that private debt increase to 3% from 1% and private equity increase to 6% from 4%.

Other recommended changes are: Increases in the targets to international equity to 14% from 12% and core real estate to 7% from 5%, and decreases in the targets to global asset allocation to 10% from 12%, hedge funds to 7% from 9%, and emerging markets equities to 5% from 7%. A 2% private real assets target would be eliminated.

Targets that would remain unchanged would be: domestic large-cap equities, 13%; domestic smidcap equities, 9%; domestic core fixed income, 8%; absolute return fixed income and global equities, 5% each; and emerging markets debt, 3%.

The pension fund does not issue RFPs. Whether interested managers can contact investment consultant NEPC could not be immediately learned.

Andrew Clark, executive director, did not return a phone call by press time.