State Board of Administration of Florida, Tallahassee, trustees approved a change in asset allocation at its monthly board meeting, said Tom Herndon, executive director at the $93 billion pension fund. International equities will be raised to 12% from 8%; domestic equities will be cut to 55% from 58%; and domestic fixed income will be cut to 25% from 26%. The remainder is divided between alternatives, cash and real estate. In addition, the system will create a new asset class for alternative investments, which will include the current private equity portfolio. The new asset class will have a separate staff, and those positions could be filled from within, Mr. Herndon said. Currently, Florida has a $3 billion private equity portfolio, with $1.9 billion invested. The new class will be about the same size as the private equity allocation, at 3% of assets, but could include a more varied range of strategies. The board also approved new benchmarks for the system. The international benchmark will now be the MSCI All Country World Free index, excluding the U.S. For real estate, the system will use both the Wilshire Real Estate Securities index and the Consumer Price index plus 450 basis points. The new private equity benchmark will be a premium of 600 basis points above the domestic equity target return.