Adams County Retirement Plan, Brighton, Colo., is increasing its target allocation to international equities to 20% from 15% and reducing its U.S. equity target to 30% from 35%, said Pamela Mathisen, executive director of the $237 million pension fund.
Equity managers could see their allocation sizes change as a result of the revised targets, Ms. Mathisen said. She declined to provide further information about the changes at this time. No searches for new managers will be conducted.
The pension fund’s equity portfolio has an overweight to U.S. equities, which has served the plan when domestic stocks outperformed international equities, Ms. Mathisen said. In 2015, however, the MSCI EAFE index has been outperforming U.S. equity indexes. “Given that stocks tend be a leading indicator,” the U.S. equity overweight is being reduced, Ms. Mathisen said.
The rest of the target allocations will remain the same: 20% real estate, 15% fixed income, 10% hedge funds and 5% private equity.
