The $1.4 billion Montana Board of Investments (MBI) is mulling several asset-allocation changes, according to a recent board meeting document.
MBI is planning to increase the midpoint of real assets from 5 percent to 6 percent, and increase the midpoint of real estate from 10 percent to 11 percent. According to MBI, both real assets and real estate offer attractive total returns with steady cash flows to pay benefits, and are also strong diversifiers to the equity exposure in the portfolio.
MBI's real assets portfolio includes commodities, natural resources and infrastructure. The current range for real assets is 2 percent to 8 percent, but is set to increase to 3 percent to 9 percent.