The $72.5 billion Pennsylvania Public School Employees' Retirement System (PSERS) has approved a new strategic-asset allocation.
The allocation changes include an increase in public equities and the elimination of its absolute return holdings. The public real assets allocation will shift from 17 percent to 14 percent, and public real assets will increase from 11 percent to 12 percent.
“The board’s decision to change the asset allocation by adding more public equity over time will help increase PSERS net investment income in positive market conditions,” said Chris Santa Maria, board chair of the pension fund. “However, this allocation also increases slightly our risk profile in down market conditions.”
The board’s investment committee also announced that the fund’s net return for the quarter ending Sept. 30 was 3.05 percent, higher than its 1.98 percent benchmark for the quarter.
The board also approved several new commitments: $150 million t
