Santa Barbara County (Calif.) Employees' Retirement System is increasing targets to international developed markets equities, non-investment-grade fixed income, private equity, real estate and real assets as the result of an asset allocation study, said Ellen Hung, assistant CEO, in an e-mail.
The $2.6 billion pension fund conducted an asset allocation study due to the hiring in May of new investment consultant RVK.
The target to real assets is being increased to 15% from 12%; international developed markets equities to 11% from 9%; non-investment-grade fixed income to 11% from 9%; private equity to 10% from 7%; and real estate to 10% from 8%.
Targets being reduced are domestic equities to 19% from 23%, investment-grade fixed income to 17% from 21%, and emerging markets equities to 7% from 11%.
Ms. Hung said there are no expectations of RFPs or manager terminations at this time, “as the next steps are structure studies.”
As of Aug. 31, the actual allocation was 24.2% investment-grade fixed income, 23.1% domestic equities, 9.2% real assets, 9.1% emerging markets equities, 8.7% real estate, 8.6% international developed markets equities, 8.2% non-investment-grade fixed income, 7.2% private equity, 0.9% frontier markets equities and 0.8% cash.