New York State Teachers Retirement System trustees voted to eliminate global fixed income as an asset class. As a result, the $89.2 billion system will terminate Fiduciary Trust, which managed $590 million; Lombard Odier, $613 million; and Wellington Asset, $814 million. That money will be shifted and used opportunistically to help the Albany-based system reach its new target asset allocations, recommended by consultant Evaluation Associates. The new targets are: 55% domestic equity; 20% domestic fixed income; 9% international equity; 6% real estate; 6% mortgages; 3% alternatives; and 1% emerging-markets equity.
The system also decided to reduce domestic equity by $200 million over two years; the money will be reallocated to real estate, mortgage and alternative investments.