The Allegheny County (Pa.) Employees' Retirement System has approved the addition of a 5 percent global infrastructure target allocation with a 3 percent to 7 percent range.
The asset allocation was changed to enhance the expected risk/return characteristics of the portfolio, according to a recent consultant’s report from AndCo, which will conduct a search for a new investment manager to implement the investment strategy.
Funding for the fees for the new infrastructure allocation will come from fixed income. Pension officials said that in the current low-interest rate environment, global infrastructure has better future prospects than fixed income. It also can provide diversification and offer inflation protection for the portfolio.
