The Retirement Systems of Alabama, Montgomery, cut its equity exposure to 35% of total assets from 44%, said CEO David G. Bronner.
The fund has 47% of its assets in fixed income, and the remaining 18% in a combination of real estate, cash and alternative investments. The pension fund, with slightly less than $17 billion, sold about $1.3 billion of its assets in a S&P 500 index fund, and banked $490 million in profits. Some of the profits may go into international stocks, and some into direct investments, Mr. Bronner said.
``The growth in the domestic stock market dictated you grab some of the profits,'' Mr. Bronner said.
The pension fund manages all of its money internally.
