Ohio School Employees Retirement System, Columbus, might consider going into infrastructure investments over the next year, confirmed spokesman Tim Barbour.
The board of the $11.5 billion pension fund approved at its meeting on June 21 a new asset allocation that includes a target allocation of 15% for global real assets. The pension fund previously had a 10% target allocation to global real estate; that asset class is now included in global real assets.
The change reflects the possibility of investing in the future in asset classes such as infrastructure or commodities, he said, adding it is unlikely the pension fund would look into asset classes other than infrastructure for the foreseeable future.
The new asset allocation, which stems from an asset allocation study done by staff and investment consultant Summit Strategies Group, also includes a target allocation of 10% to multiasset strategies, a change in name for the portfolio from global hedge funds, which previously had a target of 15%. Mr. Barbour said the name change better reflects the pension fund's current investments.
Mr. Barbour said searches for new managers are not being considered now because the actual allocations are still within desired ranges.
Targets that remain unchanged are: 45% global equities, 19% global fixed income, 10% global private equity and 1% short-term investments.
As of April 30, the actual allocation was: 49.7% global equities, 16.8% global fixed income, 13.5% global hedge funds. 10% global real estate, 9.1% global private equity, and 0.9% short-term investments.
Separately, the pension fund committed $50 million to Levine Leichtman Capital Partners V, a mezzanine debt fund; and $40 million each to Highbridge Principal Strategies Specialty Loan Fund III, a senior middle-market loan fund managed by Highbridge Capital Management, and Pacific Investment Management Co.'s PIMCO Bravo II, debt-focused opportunistic fund.
Investment consultant Summit Strategies Group assisted.