Otter Tail Power Co., Fergus Falls, Minn., is raising its allocation to domestic and international equities by five percentage points each. Funding will come from its fixed-income portfolio. No manager changes are planned.
The $155 million plan also will drop its 20% allocation to core equity, moving the funds to structured equities, said Bruce Clark, manager of corporate compensation and benefits. INVESCO will continue to manage the money. The change was made to balance a higher risk potential.
The new asset mix is: 50% large-cap equities; 10% small-cap equities; 10% international equities; and 30% fixed income. The changes are the result of an asset allocation study.