Imperial County Employees' Retirement System, El Centro, Calif., approved increasing its target allocation to private credit to 8% from 5%.
The $1.1 billion pension fund's board approved the change at its Oct. 18 meeting, recently released meeting minutes showed.
The board also approved lowering the target to international equities to 17% from 20%.
The changes are the result of an asset-liability study conducted by investment consultant Verus Advisory.
The consultant will recommend the implementation plan for lowering the international equity target to the pension fund's board at its upcoming Nov. 15 meeting. In meeting materials, it shows that the current actual allocation to international equities is 18%.
The recommendations are to lower BlackRock's passive international developed markets equity portfolio to $136 million from $146 million and Dimensional Fund Advisors' active emerging markets value equity portfolio to $20 million from $25 million. That will bring the actual allocation down to 16.4%.
The current actual allocation to private credit is 5.1%. An investment plan for reaching the new target has yet to be determined.
The pension fund's other targets, which are remaining the same, are 33% domestic equities, 27% fixed income, 10% real estate and 5% private equity.