Pennsylvania Public School Employees' Retirement System, Harrisburg, approved the commitment of up to $1 billion to six alternatives funds and approved changes to its target asset allocation, a news release from the $57 billion pension plan said.
At its Aug. 9 meeting, the board agreed to commit $300 million apiece to Platinum Equity Capital Partners V, a buyout fund; and SSG Capital Partners V, an Asian private credit fund managed by Hong Kong-based SSG Capital Management.
The board also committed $100 million each to Bell Institutional Fund VII, a multifamily real estate fund, managed by Bell Partners; Cabot Industrial Value Fund VI, an industrial real estate fund, managed by Cabot Properties; DRA Growth & Income Master Fund X, a diversified real estate fund managed by DRA Advisors; and AG Europe Realty Fund III, a European value-added real estate fund managed by Angelo, Gordon & Co.
The PennPSERS board also approved the following changes to the plan's target asset allocation: increase its allocation to investment-grade fixed income by 1% to 12%; increase credit-related fixed-income to 12% from 10%; reduce risk parity to 8% from 10%; and increase its use of gross leverage to -20% from -21%. The board also agreed to raise its exposure to emerging markets equities to 1.5% from 0.5%, and lower its exposure to international equities to 8.7% from 9.7%. In infrastructure, PennSERS agreed to increase private infrastructure to 1% from zero, and reduce MLPs to 3% from 4%. Finally, in real estate, the board agreed to increase public real estate to 2% from 1%, and reduce private real estate to 8% from 9%. The changes go into effect Oct. 1.
