Iowa Public Employees' Retirement System, Des Moines, made changes to its asset allocation policy, confirmed Shawna Lode, spokeswoman for the $34 billion pension system, in an email.
At its Thursday meeting, the IPERS board agreed to increase its allocation to private equity to 13% (from 11%) and private credit to 8% (from 3%), while decreasing its target to core-plus fixed income to 20% (from 28%).
The changes were recommended by IPERS' investment consultant, Wilshire Associates.
"This plan achieves higher portfolio efficiency by increasing the utilization of private market strategies in a lower return environment," IPERS CEO Greg Samorajski said in a news release.
Ms. Lode said that the asset allocation plan will be adopted "over some length of time." The board currently does not know which managers or mandates will be affected as a result of the new policy.