South Carolina Firemen's Pension Fund, Columbia, added alternative investments as a new asset class, the result of a recently completed asset allocation study of the $20 million plan, said Gary Forte of consultant Prudential Securities.
The plan allocated 10% of total assets to alternatives and raised its target for REITs to a maximum of 20%, from a maximum of 15%. The pension fund also raised its target for convertible bonds and international equities to between 5% and 20% each, from a maximum of 15%. At the same time, the system cut back its domestic equity target to between 30% and 60%, from the 50% to 70% range, Mr. Forte said.