Employees Retirement System of Texas, Austin, plans to increase its high-yield bond and small-cap and midcap equity allocations, while cutting its fixed-income portfolio, said Mary Jane Wardlow, spokeswoman. High yield will be raised to 8% of total assets, from 4%; small-cap and midcap equities will be a combined 7%, from 4%; and fixed income will be cut seven percentage points to 30%. Large-cap equities will remain at 37%, while international stocks will stay at 18%. The changes were the result of an asset allocation study of the $20 billion system approved by its board on Wednesday.
The system's investment committee has not decided how to implement the changes, and no new searches are planned, she said. Callan Associates assisted.