The $1.3 billion Carnegie Corp. of New York Foundation Fund, New York, approved a new target allocation policy that includes raising alternative investments to 30% of its total assets, said Jeanmarie C. Grisi, treasurer.
The fund targeted 10% each for allocations to private equity, real estate, and absolute-return strategies, including market neutral, distressed securities, and risk arbitrage. Currently, the fund has a negligible allocation to real estate and some investments in private equities. Because of a reclassification by the fund of these assets the current allocation to the entire alternative area wasn't immediately available.
Other new allocation targets include raising international equities to 15% from a smaller level and lowering U.S. fixed income and cash to 25% from a significantly higher level; both current allocations weren't available.
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, Ms. Grisi said.
The fund hasn't yet set a time period for implementation and searches, which is under discussion now, she said. Cambridge Associates assisted in the changes, although Ms. Grisi said it probably won't on manager searches.
