Denver Employees Retirement Plan is eliminating its exposure to long-term government bonds following a strategic asset allocation review.
The $2.8 billion pension fund's board approved the change at its April 15 meeting, recently released meeting minutes show.
Investment consultant Meketa Investment Group recommended the change to "address the anticipated rise in rates in the current environment," according to the minutes. Assets will be reallocated to short- and intermediate-term government bonds and hedge funds, according to the minutes.
Specific information on the target allocation amounts and managers affected by the change was not provided.
According to the pension fund's most recent available comprehensive financial annual report, as of Dec. 31, 2020, the pension fund's targets to total fixed income and total alternative investments were 25.5% and 12.5%, respectively.
Randall Baum, chief investment officer, could not be immediately reached for further information.
