Louisiana Firefighters' Retirement System, Baton Rouge, is creating a 5% target allocation to absolute-return fixed income following an asset allocation review, recently released board meeting minutes said.
The $1.4 billion pension fund is creating the target after the board voted at its Feb. 13 meeting to adopt a new 5% allocation and reduces the target to core fixed income to 14% from 19%.
Whether the change will result in any searches could not be learned by press time.
Other targets remain the same: 16% domestic large-cap equity, 12% international equity, 10% global equity, 8% each domestic smidcap equity and private equity, 7% real estate, and 5% each emerging markets debt, emerging markets equity, global asset allocation and risk parity.
As of Dec. 31, the pension fund's actual allocation was 21% domestic large-cap equity, 16% domestic core fixed income, 11% international equity, 10% global equity, 8% domestic smidcap equity, 7% real estate, 5% each emerging markets equity, global asset allocation, private equity and risk parity, 4% emerging markets debt and 3% other.
Steven Stockstill, executive director, would not provide further information.
