Manchester (N.H.) Employees’ Contributory Retirement System might increase its allocation to diversified fixed income and lower its allocation to emerging markets debt in 2015, said Gerard Fleury, executive director.
The $200 million pension fund’s investment consultant, NEPC, has issued a tentative recommendation to increase the pension fund’s target to diversified fixed income to 11% from 8% and lower the emerging markets debt target to 3% from 6%.
The change is pending investment return results at the end of the year. Mr. Fleury said the potential change is an acknowledgement that the pension fund’s more unconstrained fixed-income managers are able to diversify more, while emerging markets debt performance thus far in 2014 has not been doing well.
The pension fund’s board will attend an annual asset allocation review at NEPC’s offices on Jan. 13 and vote on the changes at its Feb. 10 meeting. Mr. Fleury said there will be no manager searches; rebalancing will occur between existing managers and no managers will be terminated.