Ohio Public Employees’ Retirement System, Columbus, will search for an undetermined number of active domestic equity, domestic fixed-income and private equity managers. The new equity managers will handle about 10% of the $58 billion system’s overall domestic equity portfolio, which will comprise 44% of total assets under the plan’s new target allocations. The new fixed-income managers will handle about 15% to 20% of the fund’s overall target bond allocation, which is 23% of total assets. It also is adding a private equity allocation, its first foray into the asset class, with a target of 4% of total assets. All of the system’s domestic equities and fixed-income investments had been handled internally.
The changes are the result of recommendations by Ennis Knupp, which was hired in July to assist in asset allocation and asset-liability studies as well as manager searches, said Neil Toth, director of investments. International equity and real estate are targeted to comprise 20% and 9% of total assets, respectively.
The system has not set exact portfolio sizes because it expects total assets to increase by the time the first managers are hired later this year. It has not set timetables for the searches. Mr. Toth stressed the plan requests no inquiries at this time.
The plan also will search for its first permanent retainer consultant later this year. The system hopes to have a new consultant on board before Ennis Knupp’s contract expires in June.
