Sioux Falls Employees changes target allocations after asset-liability study

Sioux Falls (S.D.) Employees' Retirement System increased its targets to international equities and real estate, and reduced its targets to domestic equities, said recently released board meeting minutes.

The $466 million pension fund's board approved the changes at its Feb. 14 meeting, increasing the targets to international equities and real estate to 22% and 7%, respectively, from 20% and 5%. The pension fund also reduced its domestic large-cap equities target to 30% from 35%, and changed its domestic small-cap equities target to include midcap equities and increased the target to 16% from 15%. The fixed-income target remains unchanged at 25%.

The board also approved rebalancing "any remaining asset category allocations per the new target ranges," according to the minutes. Whether any managers will be hired or terminated as a result of the new targets is unknown.

The changes were the result of an asset-liability study by actuary Gabriel Roeder Smith and analysis by investment consultant AndCo Consulting.

Thomas Huber, the city's assistant director of finance, could not be immediately reached to provide further information.