Fort Lauderdale (Fla.) General Employees' Retirement System has eliminated its emerging markets equity asset class and raised its target to domestic equities.
The $745 million pension fund’s board approved the change at its May 9 meeting, said Kevin Condy, director of research at investment consultant Dahab Associates, which assisted with the changes.
The board’s vote resulted in the elimination of the pension fund’s 12% target to emerging markets equities. Condy did not provide a reason the board voted to exit the asset class entirely.
As a result of the deletion of emerging markets equities, the board approved raising the target to domestic equities to 52% from 40%.
Other changes were the raising of the targets to real estate to 15% from 10% and private equity to 6% from 5% and lowering the target to fixed income to 12% from 15% and eliminating the 3% target to cash. The target to international equities remains unchanged at 15%.
Condy did not provide further information on hires and terminations. As of March 31, Schroders managed $14 million in active emerging markets equities, Glovista Investments and Invesco managed $13 million each in active emerging markets equities and State Street Global Advisors managed $10 million in passive emerging markets equities.
As of March 31, the actual allocation was 42.3% domestic equities, 14.9% international equities, 12.9% real estate, 9.8% fixed income, 7.5% private equity, 6.8% emerging markets equities, 4.8% farmland and 1% cash and equivalents.
Nick Schiess, pension administrator, did not respond to requests for further information.
