Ventura County (Calif.) Employees' Retirement Association approved changes to its target allocation, said Linda Webb, retirement administrator, of the $4.4 billion pension fund.
The changes were recommended by NEPC, the pension fund's investment consultant.
The changes include new target allocations to global tactical asset allocation (10%), hedged international equity (5.5%) and private debt (5%). Overall targets to equity and fixed income will be reduced five percentage points each to 54% and 19%, respectively, and the 5% global bonds target will be eliminated.
Negative 10-year real yields in the U.K., Europe and Japan led to the decision to remove the global bonds target completely, said materials provided to the pension fund by NEPC.
For asset classes that are having their targets reduced, the new targets are 24% large-cap equity, down from 27%; 2% small/midcap equity, from 3%; 5.5% unhedged international equities, from 12%; 10% core fixed income, from 12%; and 4% absolute-return fixed income, down from 7%.
Target allocations that remain the same are 10% global equities, 7% real estate, 6% risk parity, 5% private equity, 4% master limited partnerships and 2% emerging markets equity.
Ms. Webb referred questions on manager searches and terminations to the pension fund's consultant, which would assist with any searches.
Allan C. Martin, partner at NEPC, was not immediately available for comment.
