Allegheny County Employees' Retirement System, Pittsburgh, created a new target of 5% to global infrastructure.
The $1 billion pension fund's board at its May 20 meeting approved the recommendation of investment consultant AndCo Consulting to create the new target to improve the pension fund's risk/return profile, recently released board meeting minutes showed.
Funding will come from the elimination of the pension fund's Treasury inflation-protected securities target allocation of 5%, the minutes showed.
The pension fund currently has one single TIPS manager identified in its most recent investment report as MCM. As of May 31, the portfolio had $39 million in assets in the plan.
Walter Szymanski, the pension fund's manager, could not be immediately reached for further information.
The pension fund's other targets are 20% private equity; 16.5% each domestic equity and international/global equities; 12.5% each core fixed income and private real estate; 12% high yield fixed income; and 5% liquid policy portfolio.