The Retirement Systems of Alabama cut its equity exposure to 35%, said David G. Bronner, chief executive officer.
The fund previously had 44% in equities.
It also has 47% of its assets in fixed income, and the remaining 18% in a combination of real estate, cash and alternative investments.
. The pension fund, with slightly less than $17 billionin total retirement assets, sold about $1.3 billion of its assets in a Standard & Poor's 500 index fund, Mr. Bronner said.
It banked about $490 million in profits.
Some of the profits might go into international stocks, and some of them might go into direct investments, according to Mr. Bronner.
"The growth in the domestic stock market dictated you grab some of the profits," he said.
. The fund, based in Montgomery, manages all of its retirement assets internally.