New York State Teachers' Retirement System, Albany, added a new 2% target allocation to global bonds, increased its target to international equities and cut its domestic equities target, confirmed spokesman John Cardillo.
The target adjustment, which takes effect immediately, was part of a “normal rebalancing” of the $89 billion system's portfolio, Mr. Cardillo said in an interview.
The system's retirement board on Wednesday authorized reducing the domestic equity target to 37% from 42% and raising the international equity target to 18% from 15%, along with adding global bonds.
As of June 30, domestic equity accounted for 45.6% of the system's portfolio and international equity represented 13.3%.
Mr. Cardillo said the system will be working with consultant Hewitt EnnisKnupp “to devise a strategy” for managing the new global bond allocation. The system “doesn't anticipate any changes in managers in the near future” with the international equity and domestic equity targets, he added.
The retirement board also left intact many targets for other assets — 18% domestic fixed income, 10% real estate, 8% mortgages, 7% private equity and 0% cash.
As of June 30, actual allocations were 14% for domestic fixed income, 9.6% for real estate, 7.9% for private equity, 6.1% for mortgages and 3.5% for cash.