Louisiana State Employees' Retirement System, Baton Rouge, increased its targets to domestic equities and private markets, and lowered its target to international equities following an asset allocation review.
The $12.7 billion pension fund's board approved the changes at its March 23 meeting, said Robert W. Beale, chief investment officer, in an email.
The board approved increasing the targets to private markets to 24% from 22%, domestic large-cap equities to 24% from 23%, and domestic smidcap equities to 10% from 8%, along with decreasing the targets to international large-cap equities to 8% from 10%, emerging markets equities to 6% from 8%, and international small-cap equities to 4% from 5%.
Mr. Beale said the pension fund will implement the changes to the public markets asset classes for the remainder of the year and said there will be no manager changes. He noted that for domestic equities, any increases will result in additions to internally managed passive portfolios.
The private markets increase will occur over the next few years, Mr. Beale said.
Targets that remain unchanged are 14% global multisector fixed income, 4% absolute/opportunistic return and 3% each core fixed income and emerging markets debt.
As of Dec. 31, the actual allocation was 23.8% private markets, 21.5% domestic large-cap equities, 12.1% global multisector fixed income, 8% international large-cap equities, 7.7% emerging markets equities, 5.2% domestic small-cap equities, 5% international small-cap equities, 4.9% absolute return, 4.6% domestic midcap equities, 3% emerging markets debt, 2.4% core fixed income, 1.2% high-yield fixed income and 0.6% cash equivalents.
Investment consultant NEPC assisted.
