Fire & Police Pension Association of Colorado, Greenwood Village, approved changes to its asset allocation targets, said CIO Bill Morris. The $1.7 billion system will increase international equities to 20% from 18%, boost alternatives to 9% from 8% and decrease fixed income to 26% from 29%. The changes are the result of an asset-liability study completed earlier this month. No adjustments were made to domestic equities at 38%, real estate at 6% or cash at 1%. The increased allocations will be divided among existing managers, Mr. Morris said.
Separately, the board voted to use S&P 500 swaps instead of S&P 500 futures in its $85 million portable alpha program, subject to due diligence, Mr. Morris said. Current futures manager State Street Global Advisors will run the swaps contracts, Mr. Morris said. The board decided to make the switch because "you can track the index returns more tightly than with futures," he said.