Trustees of the $8 billion Alaska Retirement Systems, Juneau, approved the system's first allocation to international fixed income and increased the allocation to real estate and international equity, said CIO Robert Storer.
The new allocations will be funded from the system's domestic fixed-income allocation, which is internally managed.
Domestic fixed income is being reduced to 32% of total assets from 48%, said Mr. Storer. International fixed-income will be 7% of total assets; international equity will increase to 13% from 9%; and real estate will increase to 8% from 3%. Domestic equities will remain at 40% of assets. Trustees will adopt a time horizon for implementing the new plan at the fall meeting. Mr. Storer expects the changes to occur over three years.