Ventura County (Calif.) Employees' Retirement Association increased its target allocation to private equity to 13% from 10%, said Dan Gallagher, chief investment officer, in an email.
The $5.6 billion pension fund funded the increase by dropping the target to real assets to 7% from 10%. Mr. Gallagher said the hike in private equity is an effort to increase long-term returns and the shift will take several years. No managers will be terminated.
The rest of VCERA's target allocation, which will remain unchanged, is 28% domestic equities; 20% domestic fixed income; 15% international equities; 10% global equities; and 7% real estate.
The current actual allocation is 28.5% domestic equities, 17.8% domestic fixed income, 16.3% international equities, 11% global equities, 8% real assets, 7.8% real estate, 6.6% private equity, 1.8% each cash and U.S. Treasuries, and the rest in private debt.
Investment consultant NEPC assisted with the change.