Mendocino County Employees’ Retirement Association, Ukiah, Calif., approved changes to its target asset allocation, with increases to international equity and private real estate, and a decrease to fixed income, said James Wilbanks, retirement administrator.
The new targets are 38% broad domestic equity, 29% international equity, 22% broad domestic fixed income and 11% private real estate.
The $428 million pension fund’s previous targets were 38% broad domestic equity, 28% domestic fixed income, 25% international equity, and 9% real estate.
The changes are the result of an asset-liability study conducted by Callan Associates, the pension fund’s investment consultant.
An allocation to private equity was considered but not adopted, Mr. Wilbanks said, adding liquidity risk was one of the pension fund board’s concerns.
Of the increase to international equity, Mr. Wilbanks said the board was more comfortable taking on a little more volatility risk to pursue a higher rate of return.
Callan will work with the pension fund on any manager lineup changes.
