Kansas Public Employees Retirement System, Topeka, is creating a 14% target allocation in real return strategies including TIPS, timber and infrastructure, part of a new asset allocation recommended by investment consultant Pension Consulting Alliance, said CIO Robert “Vince” Smith. The $14.1 billion plan previously had a 10% allocation exclusively in TIPS that will be moved into the real return portfolio; funding for the remainder of the portfolio will come from fixed income, Mr. Smith said.
The remaining targets are 30% domestic equity, from 35%; 25% international equity, from 22%; 14% fixed income, from 19%; 10% real estate, from 8%; and 6% private equity, from 5%. Cash remains at 1%. The allocation shift resulted from an asset/liability study completed in January
KPERS will issue several RFPs in the coming weeks for investment managers, Mr. Smith said. He would not give additional details on the expected searches.
