Denver Public Schools Retirement System will increase its domestic and international equity allocations by two percentage points each in the next three to six months, said David A. Stella, executive director. The new targets will be 32% and 17%, respectively. The money will come from fixed income, which will be cut by four percentage points to 36% of assets. The $2.2 billion pension plan's other targets are 10% real estate and 5% alternative investments. Plan officials have not decided if current equity portfolios will be increased or if additional international and domestic equity managers will be sought, he said. The move is the result of an asset-liability study conducted by Callan Associates, he said.
The plan's domestic large-cap equity managers are Arnhold & S. Bleichroeder, Deutsche Asset Management and TCW; its domestic small-cap equity managers are Boston Co., DeAM, Constitution Research and Cordillera Asset; and its international managers are Morgan Stanley, T. Rowe Price and TT International.
Legg Mason and GMAC each manage $140 million in mortgages, which are included in fixed income; and WAMCO, Vanderbilt and Seneca manage a total of $290 million in fixed income, he said.