North Carolina Retirement Systems, Raleigh, is conducting an asset-liability study.
The $118.2 billion retirement systems' investment advisory committee is conducting the study with the assistance of investment consultant Callan.
Callan presented five potential asset mixes at the Feb. 23 meeting of the committee, meeting materials show.
Dan Way, spokesman for North Carolina State Treasurer Dale R. Folwell, sole trustee of the systems, said in an email a final presentation will be made at the May 25 investment advisory committee meeting. Mr. Folwell has the authority to approve changes to the investment policy, Mr. Way added.
The current target allocation for the systems is 42% global equities, 28% investment-grade fixed income and cash, 7% opportunistic fixed income, 6% each inflation-sensitive assets and private equity, 5% core real estate, 3% non-core real estate, 2% multistrategy portfolio and 1% cash only.
The most significant potential changes among the five proposed asset mixes are in the targets to global equities and investment-grade fixed income-cash. Potential targets to global equity range to 51% from 31% and investment-grade fixed income-cash to 39% from 19%.
Among the choices are a new target allocation that would increase the investment-grade fixed income-cash target to 39% and drops global equity to 31%, and another that increases global equities to 51% and drops IG fixed income-cash to 19%.
While other asset classes may potentially change, all allocation changes are within two percentage points among the five proposed mixes.
According to Callan's Feb. 23 presentation, the systems' actual allocation was 36% global equities, 27.4% investment-grade fixed income and cash, 11.1% cash only, 6.1% private equity, 5.7% opportunistic fixed income, 4.8% core real estate, 4.6% inflation-sensitive assets, 2.4% non-core real estate and 1.9% multistrategy.
