Ohio Public Employees Retirement System, Columbus, will allow the use of synthetic enhanced index strategies in part of its domestic equity portfolio as part of changes in domestic and international equity policy approved by the board of the $60 billion system, according to Richard Baker, spokesman. The system's domestic equity allocation was changed to a 60/40 split between passive and active, from 70/30, with the additional 10 percentage points to allow for the new strategies.
For international equity, the changes involve reclassifying enhanced passive investments as active, which results in an 80/20 split between active and passive. Prior to the change, the allocation was 60% active, 20% passive and 20% enhanced.
The changes, which Mr. Baker said will not lead to any investment manager changes, also eliminate the distinction between internal and external strategies in their allocation breakdowns.