Missouri Local Government Employees Retirement System, Jefferson City, added target allocations of up to 5% each to real estate and private equity, according to CIO Brian Collett. System officials plan to have managers in place within the next three to five years; there are no immediate plans for searches.
Funding will come from reducing equities to 56% of assets from 62% and fixed income to 27% from 30% and eliminating a 1% allocation to cash. The $3.8 billion plan's alternatives allocation, which includes real estate and private equity, will now total 17% of assets.
The allocations — the result of an asset allocation study begun in the fourth quarter — are designed to help the plan diversify, Mr. Collett said. The plan's actuary, Gabriel Roeder Smith, conducted the study with Becker Burke Associates. The plan does not have an investment consultant on retainer.