Virginia Retirement System, Richmond, added a 3% high-yield fixed-income allocation and increased its hedge funds, private equity and real estate investments. The $38 billion system's new targets are: 38.75% domestic equities; 20% fixed income; 20% international equities; 7% private equity; 6% real estate, 5% hedge funds; 3% high-yield bonds and 0.25% in cash, according to Jeanne Chennault, spokeswoman. The previous targets were 48% domestic equities; 22% in fixed income; 17.85% international securities; 5.1% private equity; 3.8% real estate; 3% hedge funds; and 0.25% cash.
The system will not move toward the new targets right away, but as opportunities present themselves, she said.
Separately, the system hired Hermes Focus to manage $150 million in international equities and committed $35 million to hedge fund SAB Capital Partners; $35 million to Wicks Communication and Media Partners III; and $10 million to Novak Biddle Venture Partners IV. Funding will come from cash, said Nancy Everett, CIO.