Kentucky Teachers’ Retirement System’s investment committee tweaked the asset allocation of the Frankfort-based retirement system’s $17.5 billion pension fund, said Paul Yancey, chief investment officer.
The target allocation to bonds was reduced to 17% from 19%, and the target for domestic large-cap equity dropped to 38% from 39%. The target allocation to international equities rose to 19% from 18% and the target allocation to “additional categories” rose to 9% from 7%.
The rest of the target allocations were unchanged: 5% alternatives, which includes private equity, timberland and infrastructure; 5% real estate; 3% domestic midcap equity; 2% domestic small-cap equity; and cash 2%.
As of April 30, the actual allocation was 63.2% equity; 19.5% fixed income; 6.7% additional categories, including high-yield bonds and bank loans; 4.2% real estate; 3.6% alternatives; and 2.8% cash.
The changes are subject to ratification by the full board at its June 16 meeting.
Separately, the retirement system committed $10 million to PRISA, a core real estate fund managed by Prudential Real Estate Investors.
The commitment was made at the retirement system’s May 22 investment committee meeting on behalf of the $490 million Medical Insurance Plan, which funds retiree health benefits.
