Montgomery County Employees' Retirement System, Rockville, Md., is reviewing its asset allocation following legislative changes made by county lawmakers in November that removed restrictions on how much the fund could invest in domestic and international equities, said Patrick Bell, acting executive director.
The $1.7 billion fund's previous equity targets were 48% domestic stocks; 10% international (the maximum allowed by county lawmakers); and 6% real estate; for a total equity target of 64%, just slightly lower than the legislative ceiling of 66.66%. Under the prudent man rule the county adopted, the pension fund may change its equity allocation at the trustees' discretion.
Wilshire Associates, the fund's consultant, is assisting with the study which should be completed in a few months.
The pension fund also hopes to present its new risk management strategy to trustees at the next board meeting in March, Mr. Bell said.