Florida State Board of Administra-tion, Tallahassee, will consider changing its target return rate from its current 8% to 4.3% plus the floating rate of inflation, in order to better reflect the real rate of return, said Tom Herndon, executive director. The $101 billion system received a good performance review from consultant Ennis Knupp, which found that the fund returned 16.7% net of fees for 1999, 133 basis points over its benchmark.
Mr. Herndon also said the systems paper portfolio of internally managed active stocks has performed well, but not great since its inception eight months ago. The model portfolio has been investing only in the United Kingdom and probably will add Japanese equities in the summer and European stocks in the fall. It will begin investing in real money around $200 million later in the year.