Omaha (Neb.) Civilian Employees' Retirement System is increasing its target to emerging markets equities and eliminating its target to international small-cap equities as the result of an asset allocation study, said Buster Brown, chairman of the board of trustees.
The $232 million pension fund increased its emerging markets equity target to 10% from 2% and eliminated its 8% target to international small-cap equities as a result of the study. Lazard Asset Management, which manages the $18.5 million international small-cap equity portfolio and $4.6 million emerging markets equity portfolio, as well as an $11.6 million active international large-cap equity portfolio, for the pension fund, will move the small-cap assets to the emerging markets equity strategy, giving it $23.1 million.
The rest of the pension fund's targets are 23% domestic equities, 20% real estate, 17% domestic fixed income, 11.5% private equity, 10% hedge funds, 5% international large-cap equities and 3.5% commodities.
The actual allocations as of June 30 were 22.8% domestic equities, 20.3% real estate, 20.2% domestic fixed income, 11.4% private equity, 7.9% international small-cap equities, 7.3% hedge funds, 4.7% international large-cap equities, 3.3% commodities and 2.1% emerging markets equities.
Investment consultant DeMarche Associates assisted.