The North Carolina House of Representatives agreed Wednesday to let the North Carolina Retirement Systems, Raleigh, invest a larger share of assets in alternative investments.
The Senate, which approved an earlier version of legislation sought by state Treasurer Janet Cowell, the pension fund's sole trustee, is expected to approve the measure Thursday. It would then go to the governor for signing and become effective immediately.
The House version, approved by a vote of 67-43, lets the pension fund raise its alternatives allocation to a maximum of 35% overall from the current 34%. It also places specific limits on categories of alternatives beneath the overall cap, calling for new caps of 10% on real estate, 8.5% on hedge funds, 8.75% on private equity and other private investments, and 7.5% each on inflation-protection and credit strategies.
The $81.1 billion pension fund's current asset limits on alternatives are 10% real estate, 6.5% hedge funds, 7.5% other alternatives including private equity, and 5% each in inflation-protection and credit strategies.
