North Dakota Public Employees Retirement System, Bismarck, is adding new 5% target allocations to infrastructure and timber, and doubling its real estate target to 10% as part of a new asset allocation for the $1.8 billion system, confirmed John Geissinger, executive director and chief investment officer of the North Dakota State Investment Board.
The board, which implements the system's investment policies, approved consultant Callan Associates' recommendation for a new asset allocation at its Nov. 17 meeting, according to Mr. Geissinger.
Domestic equity drops to 31% from 40% and domestic fixed income drops to 17% from 29%.
It's “premature to tell” if there will be any searches as a result of the new allocation, according to Mr. Geissinger, but he said the board will be looking at the structure of its fixed-income portfolio sometime in the first or second quarter of 2012, which “may necessitate some changes in mandates.”
The new target allocation is 31% domestic equities; 17% domestic fixed income; 16% developed markets equities; 10% global real estate; 5% each emerging markets equities, private equity, international fixed income, infrastructure and timber; and 1% cash.
The previous targets were 40% domestic equities; 29% domestic fixed income; 10% developed markets equities; 5% each emerging markets equities, international fixed income, global real estate and private equity; and 1% cash.
The board of the $1.5 billion North Dakota Teachers' Fund for Retirement approved the same allocation in October, also from Callan's recommendation, Mr. Geissinger said. The approach to searches will be the same as for the employees retirement system, he said.