Retirement Systems of Alabama, Montgomery, will increase its exposure to international equities and real estate in the next 12 to 18 months. The international equity allocation will increase to 10% from 8%; real estate, to 4% from 3.75%, said Darren Schulz, acting CIO. Funding for the increases will come from an elimination of international fixed income and from cash.
All assets are managed internally.
The changes will occur in the teachers,’ employees’ and judicial defined benefit plans, which have $26.4 billion in assets.
In addition, the system is considering adding equities as an asset class for its $500 million 457 plan and its closed $75 million public employees’ IRA.
