Ohio Public Employees' Retirement System, Columbus, committed and invested about $200 million to two alternatives managers and approved a new long-term asset allocation, confirmed spokesman Michael Pramik.
The $69.6 billion defined benefit plan committed $99.9 million to Industry Ventures Special Opportunities II and $50 million to Industry Ventures Secondary VII. Both funds are focused on venture capital direct secondary transactions.
The pension plan also invested $50 million in CQS Diversified Fund, a credit-oriented multistrategy hedge fund that allocates money across seven underlying CQS funds. Cliffwater assisted.
Separately, the plan approved recommendations resulting from an asset/liability study conducted by investment consultant NEPC that includes a new long-term target asset allocation.
Under the new allocation, risk parity was increased to 5% from 2%; hedge funds, to 8% from 6%; and emerging markets debt, to 4% from 3%. Public equity was decreased to 39% from 42.5% and high-yield bonds, to 6% from 6.5%. The 2% cash allocation was eliminated.
Private equity, real estate and custom core bonds all remained at 10%. Other asset classes that remained stable were opportunistic alternative investments and GTAA at 2% each; and securitized fixed income, TIPS, floating-rate debt and commodities at 1% each.
Mr. Pramik said the pension plan will decide on potential manager searches and how to implement the allocation changes in the first quarter of 2014.