Arizona State Endowment Fund, Phoenix, is increasing its allocation to equities. State pension funds were unable to invest in equities prior to a 1998 state constitutional amendment allowing it. The $957 million fund began shifting assets in July and now has 18% of total assets allocated to domestic equities; that is expected to rise to 60% in four years, said Neal Helm, deputy treasurer for investments. No manager searches are planned.
The remaining 82% of the fund is in domestic fixed income. All of the funds assets are managed in-house.