By Muskan Arora
The $24.7bn
Illinois State Universities Retirement System hiked its long-term target allocations
to private markets, public credit, real assets and crisis risk offset, while eliminating
its target to treasury inflation-protected securities of 5%.
The pension
plan has also lowered its target to public equities and core fixed income.
Consultant Meketa Investment Group and the investment staff approved the asset allocation at its March meeting.
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The stabilized growth bucket, which consists of public credit fixed income, private credit and core real assets has witnessed a hike in its target allocation from 17% to 23%, crisis risk offset, which includes long duration US treasuries, systematic trend-following strategies, alternative risk premiums, long volatility and tail-risk strategies have also seen a hike from 17% to 20%.
Further,
the private equity and non-core real assets bucket classified under
nontraditional growth assets has a hiked target allocation to 19% from 16%.
On the
reduction side, the pension plan decreased its target to traditional growth to
30% from 35%, principal protection, which consists of core fixed income to 8%
from 10%.
The
implementation of the plan will be discussed by the consultant and staff at its
April board meeting.
For the
fiscal year ending June 30, the pension plan reported a new return of 8.3%.
