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New Jersey OKs hiking alts allocation to 25.5%

By Robert Steyer
<http://www.pionline.com/apps/pbcs.dll/personalia?ID=RSTEYER> May 19, 2011,
4:13 PM ET

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New Jersey State Investment Council, Trenton, on Thursday endorsed an asset
allocation plan that would increase its exposure to alternative investments
to just more than a quarter of the $72.9 billion system's assets.

The council endorsed the state Division of Investment's recommendation that
the aggregate alternative target be raised to 25.5% for the year starting
July 1, up from a 19.2% target. The actual allocation as of March 31 was
17.1%.

The four broad alternative asset categories are hedge funds, private equity,
real estate and real assets, which includes commodities.

Among changes in the new asset allocation plan, U.S. large-cap equities will
be cut to 21.5% from 24.5%; international developed markets equities would
drop to 15% from 16.7%; cash and U.S. Treasuries, 4.5% from 7%; and TIPS,
3.5% from 4.9%.

The allocation plan represents a "prudent and tactical shift" in allocation,
said Robert Grady, council chairman. He said the proposed increase in
alternatives is part of the system's strategy to achieve greater portfolio
diversity.

The goal of the new asset allocation plan is better risk-adjusted returns,
said Timothy Walsh, chief investment officer of the pension system.


Read more:
http://www.pionline.com/article/20110519/DAILYREG/110519895#ixzz1NHG2Ndw5


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