Pennsylvania State Employees' Retirement System, Harrisburg, plans to search for managers to run $908 million in Treasury inflation-protected securities, a new allocation, and an emerging markets debt manager to handle $795 million, said Peter Gilbert, CIO. Details of the searches could not be learned by press time. Rocaton Investment Advisers is consultant.
The moves are the result of the $22.7 billion defined benefit plan's new target asset allocation, said Mr. Gilbert. The new targets are: 30% domestic equities, from 33%, (20% of total assets in absolute return strategies are included in the U.S. equity target, up from 10%); 15% domestic core fixed income from 20%; 13% international equities, from 15%; 5% high-yield bonds, from 4.5%; 4% to TIPS; 4% emerging market equities, from 3%; 4% emerging market debt, from 0.5%; and 3% for commodities, from 2%. The alternative investment target, including private equity, venture capital and distressed securities, remains at 14% and the real estate allocation also is the same at 8%. Mr. Gilbert said the plan has a five-year period in which to meet the target allocations.