Fairfax Fund Could Change Asset Allocation
June 6, 2007
The $2 billion Educational Employees' Supplementary Retirement System of Fairfax County (ERFC) could revamp its asset allocation in the fall, Alan Belstock, executive director of the plan, told IMW.
New England Pension Consultants (NEPC) has recommended that the plan reduce its equity allocation from 59% to 53%, and increase its allocation to alternatives from 13% to 19%. The majority of the increase would be invested in hedge funds.
Recently, NEPC also presented recommendations regarding the plan's real estate portfolio to the board. While the consultant did not recommend a change to the size of the real estate allocation, it did recommend that the plan invest more of its assets in value-added strategies and global REITs (See IMW, 5/7/07).
"Any changes to ERFC's asset allocation will follow the asset/liability management study that NEPC is preparing for the board," Belstock said. He noted that the study should be completed by Sept. 27.
Currently, the plan does not have any investments in hedge funds, and much of its real estate investments are in core strategies.
Separately, the board is in the process of a search for global asset allocation managers to oversee $300 million in the newly approved asset class. This search should conclude around the same time as the asset/liability study in September.
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