Florida State Board of Administration, Tallahassee, could raise the maximum international equity allocation for the $116.1 billion Florida Retirement System to 35% under legislation now awaiting Gov. Charlie Crist’s signature.
The system’s international equity allocation is now limited by statute to 25%. Its current international equity allocation is 19.9%.
The bill passed the Florida Senate on April 26 and the Florida House on April 30, both by unanimous votes.
Mr. Crist has 15 calendar days to sign the bill, said spokesman Sterling Ivey, who couldn’t say when the legislation would go before the governor. Mr. Crist hasn’t indicated whether he will sign the bill, Mr. Ivey added.
The legislation “sets the table for any adjustment we might make in the future” in international equity, said Dennis D. MacKee, communications director of the FSBA, which oversees $140.9 billion.
The board earlier this year sought Florida Legislature support to raise the statutory ceiling for the system’s international equity allocation. The move would enable the board to implement any recommendation to increase the allocation from an asset/liability study currently under way. Ennis Knupp, which is conducting the study, is expected to present recommendations to the board in June, Mr. MacKee said.
The bill before Mr. Crist also expands the FSBA’s Investment Advisory Council to nine members from six. FSBA trustees will decide how the new members will be appointed, Mr. MacKee said. Currently, each of the three board trustees — Mr. Crist; Bill McCollum, state attorney general; and Alex Sink, state chief financial officer — appoints two IAC members.
