The Louisiana State Employees' Retirement System, Baton Rouge, doubled the $7 billion fund's allocation to private equity and increased its allocations to international and emerging markets equity, said Bobby Beale, CIO. Private equity will increase to 10% of total assets, from 5%; large-cap international equity will be increased to 15%, from 9%; and emerging markets equity will rise to 5% from 3%. Also, absolute-return strategies will be raised to 8% of assets, from 5%.
The equity changes are part of an overall increase for stocks, to 63% of plan assets from 61% (39% domestic and 24% international). Overall fixed income will fall to 19% from 29%. Most of the fixed-income cuts will come from core strategies.
Plan officials will likely begin implementing the changes after their Sept. 28 meeting. No searches or terminations are planned. New England Pension Consultants recommended the changes following an asset allocation study.