By Meaghan Kilroy | May 30, 2014 3:43 pm | Updated 3:48 pm
Kentucky Teachers’ Retirement System’s investment committee tweaked the asset allocation of the Frankfort-based retirement system’s $17.5 billion pension fund, said Paul Yancey, chief investment officer.
The target allocation to bonds was reduced to 17% from 19%, and the target for domestic large-cap equity dropped to 38% from 39%. The target allocation to international equities rose to 19% from 18% and the target allocation to “additional categories” rose to 9% from 7%.
The rest of the target allocations were unchanged: 5% alternatives, which includes private equity, timberland and infrastructure; 5% real estate; 3% domestic midcap equity; 2% domestic small-cap equity; and cash 2%.
As of April 30, the actual allocation was 63.2% equity; 19.5% fixed income; 6.7% additional categories, including high-yield bonds and bank loans; 4.2% real estate; 3.6% alternatives; and 2.8% cash.
The changes are subject to ratification by the full board at its June 16 meeting.
| 1 | Large Cap | 39% | 38% | 1.0% |
| 1 | Domestic Mid Cap | 3% | 3% | 0.0% |
| 1 | Domestic Small Cap | 2% | 2% | 0.0% |
| 2 | Intl Equities | 18% | 19% | -1.0% |
| 3 | Real Estate | 3% | 3% | 0.0% |
| 6 | Bonds | 19% | 17% | 2.0% |
| 8 | Alternatives | 5% | 5% | 0.0% |
| 9 | Additional | 7% | 9% | -2.0% |
| 1 | Equity | 62.3% | ||
| 2 | Fixed Income | 19.5% | ||
| 7 | Additional | 6.7% | ||
| 3 | Real Estate | 4.2% | ||
| 8 | Alternatives | 3.6% | ||
| Cash | 2.8% |