Arizona Public Safety Personnel Retirement System, Phoenix, slightly increased its target to domestic equities and reduced targets to public fixed income, global private equity and international equities.
The $23.3 billion pension fund’s board approved the changes at its April 30 meeting following an asset allocation review, spokesman Christian Palmer said.
The board approved an increase in the target to domestic equities to 27% from 24% and reductions in the targets to global private equity to 26% from 27%, international equities to 15% from 16% and public fixed income to 5% from 6%.
Investment consultant NEPC recommended the changes to increase risk-adjusted return and liquidity, according to meeting materials. The public fixed-income target specifically was lowered because the return expectations were “below PSPRS return hurdle.”
Targets that remain unchanged are 20% private credit, 5% diversifying strategies and 2% cash.
As of March 31, the actual allocation was 24.2% global private equity, 21.8% domestic equities, 16.4% international equities, 14.9% private credit, 9.1% public fixed income, 6.2% diversifying strategies, 6% cash and 1.4% other assets.
