Officials at the $25.8 billion Retirement Systems of Alabama plan to shift assets from cash to its $11 billion domestic equity portfolio if interest rates stay low and the stock market continues to stagnate.
CIO Marc Green said the pension fund has increased its domestic equity portfolio by about $100 million already this year. The system has 6% to 7% of its total assets in cash. "You can't make much money off a Treasury (bond) yielding 4.15%," said Mr. Green. "If the market stays the same or goes down, we'll put more money into our active and large-cap funds because there will be attractive opportunities (to invest in undervalued stocks). We don't know how much in total we'd increase it by." The system manages all of its assets in-house.