Maryland State Retirement & Pension System, Baltimore, approved on Tuesday a new asset allocation recommended by the board's investment committee and investment consultant, Hewitt EnnisKnupp.
The $40.6 billion pension fund will increase its absolute-return target to 10% from 7%. The change will be made by decreasing public equities to 35% from 36%; real return, 14% from 15%; and cash, 1% from 2%.
The remaining target allocations are 10% private equity, 10% real estate, 10% fixed income and 10% credit opportunities.