Ohio pension allocate 5 percent to PE

The Ohio Public Employees' Retirement System will revamp its Health Care Fund to include a 5 percent allocation to private equity, a new asset class for the fund.

The $80 billion (€57 billion) Ohio Public Employees' Retirement System's Health Care Fund will revamp its portfolio to allocate 5 percent to private equity, according to a memo filed on the US penion plan's website. Set to be implemented in 2008, it will be the first time the state pension will be investing in private equity.

As part of its reorganisation, the pension will lower its allocation to US equites from 25 percent to 24.5 percent, and raise its allocation to non-US equities from 15 percent to 24.5 percent. It will also increase its allocation to real estate investment trusts from 5 percent to 6 percent, and reduce its fixed income allocation from 50 percent to 40 percent.

OPERS expects to complete the reorganisation of its Health Care Fund in the next seven years.