Hollywood (Fla.) Employees' Retirement Fund added a target allocation to emerging markets equities and increased targets to private credit and private equity, as a result of a recent asset/liability study.
The $312 million pension fund's board approved the creation of a new 5% target to emerging markets equities and increasing the targets to private credit to 8.8% from 3.8% and private equity to 10% from 7.5% at its April 28 meeting, recently released minutes show.
The creation of the emerging markets equity allocation will be funded by the elimination of the international small-cap equity target of 5%. As of March 31, Brandes Investment Partners ran $10 million in an active international small-cap equities.
The board also approved reductions of the target allocations to domestic large-cap equities to 17.5% from 20%, international equities to 12.5% from 15% and core real estate to 2.5% from 5%.
Targets that remain unchanged are: 26.3% core fixed income; 10% domestic small-cap equities; 3% value-added real estate; 2.5% infrastructure; and 2% opportunistic real estate. The total exceeding 100% is a result of rounding.
As of March 31, the actual allocation was: 31.5% core fixed income; 18.6% domestic large-cap equities; 17.8% international equities; 11.2% real estate; 10.3% private equity; 7.3% domestic small-cap and smidcap equities; 3.1% infrastructure; and 0.2% cash.
Investment consultant Segal Marco Advisors assisted.
Christine Bailey, executive director, could not be immediately reached for further information.