Ohio Police & Fire Pension Fund, Columbus, is increasing its target to master limited partnerships to 8% from 5%, spokesman David Graham wrote in an e-mail.
The $14.2 billion pension fund's board approved the change at its meeting Wednesday because it “offers improved risk-adjusted returns and improved total portfolio risk balance vs. the current policy target,” Mr. Graham wrote.
The current allocation to MLPs is 5.9%. Current managers are Tortoise Capital Advisors, which manages $341 million; Harvest Fund Advisors, $327 million; and Salient Capital Advisors, $173 million.
Mr. Graham wrote that there is no specific timetable for the target change and the additional funds will be divided among the three existing managers. Funding will come from other overweight asset classes. No managers are expected to be terminated.
General investment consultant Wilshire Associates assisted.