New Hampshire Retirement System, Concord, approved several changes in the $11.1 billion retirement system's target asset allocation, spokesman Marty Karlon confirmed.
The board of trustees unanimously voted Dec. 12 to reduce the global equity allocation to 40% from 50%, raise the private credit allocation to 10% from 5% and allocate 5% to infrastructure, a new category. The global equity allocation encompasses both domestic and international equity.
"These changes will be phased in, as appropriate, over a multiyear time frame," Karlon said in an email.
The allocation changes will reduce volatility, increase diversification and provide more consistent returns, according to Raynald Leveque, the pension system's CIO, in a Dec. 4 letter to the board.
The allocation changes had been recommended by the pension system's independent investment committee in November.
Prior to the announced changes, the broad target allocation was 50% global equity, 15% alternative investments, 10% real estate and 25% fixed income.
Separately, the investment committee, meeting on Dec. 12, approved a $75 million private equity commitment to Sixth Street TAO Global, managed by Sixth Street, a new manager for the pension system.
The investment committee also approved a two-year renewal of Townsend Group's contract to manage the pension systems $1.3 billion real estate allocation.
