Indiana Public Employees' Retirement Fund, Indianapolis, could conduct searches over the next two years for absolute-return, private equity and real asset managers to implement its new asset allocation, which includes raising alternatives to 30% from 15% and lowering domestic equities to 15% from 40%, said Jeffrey D. Hutson, director-outreach and communication at the $14.8 billion fund.
The fund raised the allocation to absolute-return strategies to 10% from 2%; private equity to 10% from 8%; and real assets to 10% from 5%. A breakout of the real assets allocation wasn't available from Mr. Hutson.
The fund also could search for core and core opportunistic fixed-income managers, whose allocation was raised to 20% from 15%, and for TIPS, increased to 10% from 5%. The changes reflect a rise in the overall fixed-income allocation to 30% from 20%.
In equities, the fund lowered its overall allocation to 40% from 65%, accomplished by cutting domestic equities. International equity and global equity allocations will remain, respectively, at 15% and 10%.
The new allocation could lead to dropping managers, Mr. Hutson said. The fund expects to implement the new allocation over the next two years, he added.
The new allocation reflects "a continuation of the (fund) board's focus on managing investment risk through diversification of the invested assets," Mr. Hutson said.