Louisiana State Police Retirement System, Baton Rouge, is conducting an asset allocation review that likely will be presented to the board in a few weeks, Irwin L. Felps Jr., executive director, said in an interview.
The new asset allocation will focus on “taking a strategic look at how to be more tactical in our investments,” Mr. Felps said.
The $360 million system's staff and trustees began to look at new risk factors back in 2005, adding a 15% alternatives allocation to minimize risk, eliminate volatility and stabilize returns. “We wanted to be strategic, rather than tactical, but the last two years have really shown us that we need to understand risk management much better,” he said.
According to the Money Market Directory, the state police fund's asset allocation as of late 2008 was equities, 63%; core fixed income, 18%; high-yield bonds, 7%; alternatives, 10%; and cash/short-term securities, 2%.
