Tennessee Consolidated Retirement System, Nashville, increased its targets to private equity and strategic lending, and reduced targets to core fixed income and international developed markets equities following an asset allocation review.
The $60.6 billion pension fund's board approved increases of 10% each from 7% each to private equity and strategic lending at its meeting March 26, said Shelli King, spokeswoman for state Treasurer David H. Lillard Jr., who oversees the pension fund, in an email.
The board also approved dropping the target to core fixed income to 20% from 25% and the target to international developed markets equities to 12% from 13%.
The targets to U.S. equities, real estate, emerging markets equities and Canadian equities remain unchanged at 31%, 10%, 4% and 2%, respectively. The pension fund's target to cash and cash equivalents also remains unchanged at 1%.
As of Dec. 31, the actual allocation was 29.8% U.S. equities, 24.2% domestic fixed income, 13.9% international developed markets equities, 8.6% real estate, 8.5% private equity, 7.3% strategic lending portfolio, 4.2% emerging markets equities, 1.9% Canadian equities and the rest in short-term investments.
Ms. King said no manager searches or terminations are planned.
General investment consultant Verus Advisory assisted.