Baton Rouge (La.) and Parish of East Baton Rouge Retirement System will likely add new asset classes this year, following an asset-liability study of the $835 million system, said Jeffrey Yates, retirement administrator. Consultant Summit Strategies told trustees Tuesday that the plan is on track to earn 6.6% on assets, rather than its current expected rate of 8%, Mr. Yates said. Plan officials will likely retain the 8% target but might add new allocations to small-cap equities, core fixed income or real estate to improve investment gains, he said. Officials would prefer to invite current plan managers to take on new asset classes; any searches would be conducted based on shortlists provided by Summit, he said. The decision to search will likely be made within the month.
The plan's asset allocation of 65% equity and 35% fixed income is not expected to change, Mr. Yates said.
