Illinois State Board of Investment, Chicago, reduced target allocations to multisector credit and Treasury inflation-protected securities following an asset allocation review.
The board at its March 18 meeting approved reductions in the target to multisector credit to 2% from 7% and TIPS to 3% from 4%, said Johara Farhadieh, executive director and chief investment officer.
Rock Creek Group, which has managed the multisector credit portfolio on a discretionary basis as a strategic partner with the board since 2017, will continue to manage the portfolio, Ms. Farhadieh said.
The board also approved increases to the targets to core fixed income to 20% from 18%; private equity to 9% from 7%; private credit to 9% from 8%; and infrastructure to 3% from 2%.
Targets to domestic equities, international developed markets equities, real estate and emerging markets equities, remain unchanged at 23%, 13%, 10% and 8%, respectively.
As of Dec. 31, the actual allocation was 27.6% domestic equities, 18.2% core fixed income, 14.9% international developed markets, 9.1% real estate, 8.8% emerging markets equities, 6.5% multisector credit, 5% private equity, 4.3% private credit, 3.6% TIPS, 1.3% infrastructure and the rest in cash.
The board oversees $22.7 billion defined benefit plan assets for three state pension funds: the Illinois State Employees' Retirement System, Illinois General Assembly Retirement System and Illinois Judges' Retirement System.
Ms. Faradieh could not be immediately reached for further information on whether any manager searches or terminations will result from the target changes.
General investment consultant Meketa Investment Group assisted.