Spokesman Robert Whalen said the fund also added categories for gold and timberland, Bloomberg reported.
According to the news report, the fund’s target for domestic equities shrank to 30% of assets from 35%, while international stocks fell to 13% from 16%, and hedge funds dropped to 4%.
Meanwhile, private-equity funds’ share went up to 10% from 8%. As much as 3% is allocated for assets such as gold. “Opportunistic alternatives” may get as much as 4%. Investment targets for bonds and real estate were unchanged at 30% and 6% respectively.
Changes in asset-allocation objectives are intended to create “the right mix to match up with the fund’s long-term obligations,” Whalen told Bloomberg. “To carve out room for the new asset categories, we had to reduce somewhere.”
About 75% of the domestic equity portfolio will continue to be indexed according to Whalen.