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Pension Funds

Ohio Public Employees tweaks target asset allocation

Ohio Public Employees Retirement System, Columbus, approved slight changes to its target asset allocation, spokesman Todd Hutchins said in an email.

The $97.5 billion retirement system, which includes $83.7 billion in pension fund assets, increased its pension fund target allocation to international equity to 20% from 18.7% and core fixed income to 10.3% from 8.3%. Targets being decreased are domestic equity to 19% from 20.3%; emerging markets debt to 6% from 7%; and high yield to 1.7% from 2.7%.

The changes are the result of the retirement system's annual review using investment consultant NEPC's most recent capital market assumptions. The fixed-income portfolio is internally managed, and no external manager changes are expected.

The pension fund's other targets are 10% private equity; 8% hedge funds; 5% each core real estate, non-core real estate and risk parity; 2% each global asset allocation, opportunistic strategies and Treasury inflation-protected securities; and 1% each commodities, core-plus fixed income, securitized debt and U.S. Treasuries.

As of Sept. 30, the DB plan's actual allocation was: 21.8% each, domestic equities and fixed income; 19.9% international equities; 11.3% private equity; 9.1% real estate; 7.6% hedge funds; 5% risk parity; 2.1% global tactical asset allocation; 1% commodities; 0.3 cash and other assets; and 0.1% opportunistic strategies.