Montana Board of Investments, Helena, approved a new target weights for its $1.25 billion international equity portfolio that includes higher allocations to passive, small-cap and emerging markets investments, confirmed David Ewer, executive director.
The total large-cap target weighting was decreased to 78% from 91.7%. Passive investments will now make up 64% of the large-cap portfolio, up from 51%. And for the total international equity portfolio, the passive large-cap target increases to 50% from 46.6%.
Active large-cap core, which had made up 16.3% of the total international equity portfolio will be eliminated in favor of active style-based large caps, whose weightings will remain relatively the same, at 28%.
The total passive weighting target for the international equity portfolio was increased to 57% from 50.2%; passive small-cap and emerging markets combined increases to 7% from 3.6%.
Total small-cap investments will increase to 14% from 6.3%, while total dedicated emerging markets increases to 8% from 2%.
The new structure will result in rebalancing managers' portfolios, but Mr. Ewer declined to go into further detail.
The new structure will decrease active management in developed markets large caps while increasing developed markets small-cap and emerging markets allocations.
The board oversees a total of $7.8 billion from nine pension funds.
