Ohio State Teachers' Retirement System, Columbus, is increasing its target allocations to international equities, private equity and opportunistic/diversified assets and decreasing its target allocation to domestic equities, confirmed spokesman Nick Treneff.
The board of the $62.6 billion system approved the new allocation following an asset-liability study by investment consultant Callan Associates. The new mix is “designed to potentially achieve higher returns during the next five to 10 years,” according to a system newsletter.
The target for international broad equities increases to 26% from 23%; and private equity and opportunistic/diversified each increase to 7% from 5%. The increases are funded by decreasing the system's domestic equity allocation to 31% from 38%.
The rest of the system's target allocations remain the same: 18% domestic fixed income; 10% real estate; and 1% liquidity reserve.
Mr. Treneff said the implementation date for the new mix will be July 1 and the system does not anticipate it will conduct any searches or terminate any managers as a result of the allocation changes.