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.