Illinois State Universities Retirement System, Champaign, increased its long-term targets to private markets, public credit, real assets and crisis risk offset, lowered targets to public equities, core fixed income and eliminated its target to Treasury inflation-protected securities.
The $24.7 billion pension fund’s board approved the adjustments to its asset allocation based on the recommendations of staff and investment consultant Meketa Investment Group at its March 6-7 meeting, a news release said.
The asset classes seeing increases are stabilized growth (which consists of public credit fixed income, private credit and core real assets) to 23% from 17%; crisis risk offset (long-duration U.S. Treasuries, systematic trend-following strategies, alternative risk premiums, long volatility and tail-risk strategies) to 20% from 17%; and nontraditional growth assets (private equity and noncore real assets) to 19% from 16%.
The board also lowered its target to traditional growth (public equities) to 30% from 35%; principal protection (core fixed income) to 8% from 10%; and eliminated its 5% target to inflation sensitive (TIPS).
Staff and Meketa will discuss an implementation plan at the pension fund’s April 17 board meeting, the news release said.
As of Jan. 31, the pension fund’s actual allocation was 32.5% traditional growth, 18.6% nontraditional growth, 17% crisis risk offset, 16.6% stabilized growth, 10.5% principal protection, 4.6% inflation sensitive and 0.2% cash.
