Worcester (Mass.) Retirement System raised its private and small-cap equity asset class allocations by two percentage points each to 5% and 10%, respectively. The $600 million plan also will reduce fixed income to 25% from 27% and large-cap equity to 35% from 37%, said Jim DelSignore, city auditor and trustee. The allocations to international equity and real estate 15% and 10%, respectively will be unchanged.
The new target allocations are the result of an asset-liability study, Mr. DelSignore said, and the next step of the process will be deciding which of the plans 25 managers will be affected; none has been terminated so far.