Miami Beach (Fla.) Employees' Retirement System might add target allocations to global real estate, hedge funds, and high-yield fixed income, according to the findings of an asset allocation study.
The $452 million pension fund reviewed the findings at its board meeting on Tuesday, according to Rick Rivera, pension administrator.
There was no action taken to approve the recommended new allocation, and the board will conduct further review of the study, conducted by investment consultant Milliman, at its Jan. 14 board meeting, Mr. Rivera wrote in an e-mail.
The recommended changes include creating targets of 5% each to global real estate, hedge funds and high-yield fixed income.
Milliman also recommended creating a new 14% target to a liquidity allocation “intended to cover the plan's net cash flow deficit over the next five years,” according to the study findings.
The target to domestic equities would drop to 44% from 51%, while the international equities target would drop to 15% from 18%, and domestic fixed income would drop to 12% from 31%.
Actual allocations as of Sept. 30 were 53.8% domestic equities, 28.5% domestic fixed income, 17.5% international equities and the rest in cash.
Mr. Rivera wrote that the board will discuss at its Jan. 14 meeting whether RFPs would be issued.