ROCKVILLE, Md. - Trustees of the $1.1 billion Montgomery County Employees' Retirement System, Rockville, may consider June 19 adding a domestic stock index fund to the money manager lineup, said Julie Dellinger, executive director.
The retirement system does not have any domestic index funds.
If the decision is made to add indexing to the fund, trustees might also decide at the June 19 meeting whether to give the fund to an existing manager or to launch a search for a new manager.
An index fund would be one way for the retirement system to hike its exposure to domestic stocks in order to meet the new asset allocation target of 48% of total assets; the old target was 46%.
"We continue to be significantly underweighted in domestic equities," Ms. Dellinger said, noting the system only has 38% of its assets in that class.
Money for additional domestic stock investments would be diverted from domestic fixed income, currently at around 47% of assets.
The retirement system also has lowered its real estate target to 6% of total assets from 10%, she said. The fund continues to have a 10% cap on foreign stock investments.