Ohio Public Employees Retirement System, Columbus, could search for global high-yield, floating-rate debt and emerging markets debt managers by the end of the year, according to an e-mail from fund spokesman Michael Pramik.
The move stems from the $78.1 billion system’s diversification of its fixed-income portfolio, adopting target allocations of 2% to emerging markets debt and 1% each to global high yield, floating-rate debt and high-yield securitized debt.
The system will either hire new managers or use existing managers for emerging markets debt, global high yield and floating-rate debt. The high-yield securitized portfolio will be managed internally.
Core fixed income will be reduced to 13% from 18%. The system’s overall allocation to fixed income will remain unchanged at 25%, according to Mr. Pramik.
The changes are expected to take effect by Jan. 1.