Iowa Municipal Fire & Police Retirement System, West Des Moines, is conducting an asset/liability study, said Terry Slattery, executive director of the $1.8 billion pension fund.
Investment consultant Summit Strategies Group is performing the study and looking for ways to further diversify the portfolio with less volatility while still obtaining a 7.5% rate of return, Mr. Slattery said in a telephone interview.
Summit Strategies will present specific recommendations to the board at its Aug. 30 meeting. The plan does an asset/liability study every two or three years.
The asset allocation as of March 31 was 31.5% international equity, 20.5% private equity, 20.1% domestic equity, 17.3% fixed income, 9.6% real estate and 1% cash. The target allocations are 25% each domestic and international equity; 20% each private equity and fixed income; and 10% real estate.