Texas County & District Retirement System, Austin, increased its target allocation to alternatives as part of a new asset mix for the $18 billion system, confirmed Paul J. Williams, investment officer.
The absolute-return (hedge fund) target increased to 20% from 15% while the private equity target rose to 10% from 8%, according to an investment activity report on the system's website. The emerging markets equity target increased slightly to 6% from 5%.
Target allocations were reduced for developed international equity, to 15% from 16%; core fixed income, to 10% from 15%; and TIPS, to 3% from 5%. Allocations were unchanged for domestic equity, 16%; high-yield debt, 13%; REITs, 3%; and private real estate and commodities, 2% each.
It could not be immediately learned if the target changes would lead to any manager terminations or searches.
Separately, Morgan Stanley Investment Management was hired to replace Wellington Management as manager of a $150 million REIT portfolio, Mr. Williams said. He did not provide the reason for the manager change.
The system also committed $30 million to Summit Partners Growth Equity Fund III-A and $10 million to Summit Partners Venture Capital Fund III-A, according to the fund's online investment activity report.