Oklahoma Teachers' Retirement System, Oklahoma City, approved a new asset allocation, confirmed James Wilbanks, executive director of the $11.9 billion pension fund.
The biggest change is a reduction in core fixed income to 17.5% from 25%. International large-cap equity also is decreasing, to 11.5% from 12.5%.
Several asset classes will increase under the new mix. International small-cap equity increased to 6% from 2.5%; real estate and master limited partnerships each increased to 7% from 5%; and high yield went to 6% from 5%. Domestic equity remained at 40% overall, but midcaps rose to 13% from 12.5% and large caps decreased to 17% from 17.5%. Private equity remained at 5%.
Mr. Wilbanks said the board will discuss how to implement the new asset allocation next month. He said the pension plan could increase allocations to current managers, bring in new managers or a combination of both.
The new allocation is a result of an asset allocation study conducted by investment consultant gregory.w.group
