MFA Blog

Local Colorado Public Pension Plan Increases Target Allocation for Alternatives

Posted on July 3, 2014

The Adams County Retirement Plan, based in Brighton, Colorado, approved an increase to its target allocation to alternatives.  At a meeting earlier this week, the public pension boosted its target allocation for alternatives from 27.5% to 35% of assets.

The shift was accompanied by a number of other target allocation changes after the pension’s investment consultant recommended the changes over concerns “about whether the $225 million pension fund would meet its 7.5% annual assumed rate of return,” reported Pensions & Investments.  Other than alternatives, the target allocation to fixed income was dropped from 25% to 15%, while the global equity target was boosted from 47.5% to 50%.

As of March 31, the pension’s actual allocation to alternatives stood at 27.2%.  The executive director of the pension told Pensions & Investments that it remained to be determined whether the changes to target allocations would result in any searches or terminations.

Read more about the Adams County Retirement Plan’s changes to its target allocations from Pensions & Investments.