Oregon Investment Council, Tigard, which runs the $63.2 billion Oregon Public Employees Retirement Fund, Salem, changed its asset allocation, increasing private equity by four percentage points to 20% and decreasing both public equity and fixed income, said James Sinks, council spokesman.
Public equity was lowered 5.5 percentage points to 37.5%, while fixed income was cut five percentage points to 20%.
The new asset allocation also includes smaller boosts in real estate, which gains 1.5 percentage points to 12.5%; absolute return, 1.5 percentage points to 2.5%; and infrastructure, 1 percentage point to 2.5%. Also, the target allocation to commodities and hard assets are now each 2.5%, up from 0.7% and 1.8% respectively.
The revision comes after a six-month asset-liability study conducted by consultants Strategic Investment Solutions and Pension Consulting Alliance. Council executives expect it will take three to five years to implement all the changes, Mr. Sinks said. No immediate terminations are expected, he added.
Separately, the council made initial commitments of $300 million to Lazard Asset Management and $200 million to Wells Capital for international equities closed-end funds. Council executives have the option to double each mandate, subject to approval of CIO John Skjervem