The $1.3 billion Carnegie Corp. of New York Foundation Fund, New York, approved a target allocation policy that includes raising alternative investments to 30% of its total assets, said Jeanmarie C. Grisi, treasurer. The fund targeted 10% each to private equity, real estate and absolute-return strategies, including market neutral, distressed securities and risk arbitrage. It currently has some assets in private equities and a negligible allocation to real estate.
Also, international equities will be targeted at 15% of assets from a smaller, unavailable amount. U.S. fixed income and cash will be cut.
The new allocation targets would put 30% in domestic equities, about the same level as now. The fund expects its bond managers to invest some in international fixed income, although the new targets have no specific allocation to the area. The fund hasn't yet set a time period for implementation and searches, which is under discussion.