Pennsylvania Public School Employees' Retirement System's creation of a 5% target allocation to risk parity was recently reported by Pensions & Investments. With assets of $47.9 billion, this would represent around a $2.4 billion allocation to risk parity. Bridgewater already manages $700 million in risk party for PennPSERS, and was moved to the new allocation. This leaves around $1.7 billion unallocated to the new allocation. In the past 15 months, P&I has reported three risk-parity hires with more than 90% of the money going to Bridgewater and AQR. The $110 billion Teacher Retirement System of Texas, Austin, and the $83.3 billion State of Wisconsin Investment Board, Madison, both hired Bridgewater and AQR who split a total of $1.1 billion combined from both pension funds. The $2 billion San Joaquin County Employees' Retirement Association, Stockton, Calif., hired Bridgewater and The Clifton Group Investment Management Co. to manage a risk-parity strategy. Each manager received $100 million.
To see the full details on the risk party hires, visit P&IQ.