Indiana State Teachers' Retirement Fund, Indianapolis, plans to search for absolute-return managers, said Steffanie Rhinesmith, investment officer-equities. The fund's board hopes to make a decision on how to proceed with the search in the next few months, she said. The change is part of a new asset allocation, which includes raising the absolute-return allocation to 7% of its $4.8 billion in pension assets, from 5%. The fund reduced domestic equity to 35% from 42% and fixed income to 20% from 25%, and increased international equity to 20% from 18%, real estate to 10% from 5% and private equity to 8% from 5%.
Funding for the new allocation will come from fixed income, but details haven't been determined.
