Ohio Police & Fire Pension Fund, Columbus, is adding a dedicated commodities asset class to its target allocation and increasing targets to core fixed income and private equity.
The $17.6 billion pension fund's board approved a new allocation Wednesday as a result of an asset-liability study, spokesman David Graham said in an email.
The board approved creating a new 2% target to commodities and increasing targets to core fixed income to 25% from 23% and private equity to 10% from 8%, Mr. Graham said.
The board also approved lowering targets to domestic equities to 18.6% from 21%, U.S. Treasury inflation-protected securities to 15% from 17% and international equities to 12.4% from 14%.
Targets that remain unchanged are 12% real estate, 8% real assets, 7% high-yield bonds and 5% each gold, midstream energy infrastructure and private credit.
Mr. Graham said no managers are scheduled to be terminated as a result of the changes.
The pension fund portfolio's target allocation totals 125% "due to the implementation of leverage in core fixed income and U.S. inflation-linked bonds and the implementation approach for gold," according to its website.
As of June 30, the pension fund's actual allocation was 22.6% fixed income, 20.6% domestic equities, 18.5% U.S. TIPS, 13.4% international equities, 11.5% real estate, 8.8% private equity, 7.4% high-yield bonds, 6.2% midstream energy infrastructure, 6% gold, 4.8% real assets, 3.3% cash and 2.8% private credit.
