Tulare County Employees' Retirement Association, Visalia, Calif., revised its target asset allocation, said David J. Kehler, retirement administrator, in an email.
At its meeting Wednesday, the $1.3 billion pension fund's board approved the following new target asset allocation: 28% fixed income (up from 27%); 20% international/global equities (down from 23%); 20% real assets (up from 15%); 17% domestic equities (down from 20%); and 15% private investments (unchanged).
The change was made to help the association meet its return assumption target of 7.25% while also diversifying the fund and reducing risk, Mr. Kehler said.
TCERA will use $250 million in proceeds from pension obligation bonds issued in May to help meet any capital commitments resulting from this new target asset allocation, he said.
The revised target asset allocation was recommended by the pension fund's investment consultant, Verus Advisory.