Colorado PERA changes portfolio targets

The pension will also rename its alternative assets portfolio

Colorado PERA has approved changes to its asset allocation targets, according to recently released meeting documents.

The Colorado PERA board of trustees has been considering changes to portfolio targets since the beginning of this year. The board worked with investment consultant Aon Hewitt Investment Consulting on the changes, which increase the pension’s alternative investment exposure.

The pension board approved changing the name of the alternative investment asset class to private equity, and will increase targets to an interim target of 7.5 percent, a long-term target of 8.5 percent and an overall target range of 5 – 12 percent.

Prior targets for alternative investments were a 7 percent policy target, and an overall policy rage of 4 – 10 percent.

As of September 30, 2014 the pension had an overall exposure to alternative investments of 7.8 percent.

The pension board said in meeting documents that asset allocation changes will be managed internally over time and no manager searches or RFPs are planned.

The pension will also eliminate its fixed income long duration mandate as of July 1, 2015.