Louisiana State Police Retirement System, Baton Rouge, voted at its board meeting Wednesday to move about 3% of its assets to real estate from domestic equity, said Irwin L. Felps Jr., executive director.
The rebalancing, which Mr. Felps said the $583 million pension fund will undertake immediately, is due to equities becoming overweight as a result of strong performance over the last couple of years. The domestic equity target allocation is 25%, while the current allocation is 31%. The pension fund's domestic equity managers are AJO, Fisher Investments, State Street Global Advisors, T. Rowe Price and Waddell & Reed Asset Management Group.
Real estate has a current allocation of 5.1% with a target of 7.5%. The pension fund's real estate managers are J.P. Morgan Asset Management and Prudential Real Estate.
Which managers will be affected has yet to be determined. Mr. Felps said he does not expect to search for additional real estate managers.
Investment consultant UBS Prime Asset Consulting is assisting with the rebalancing.
