In addition to adhering to asset allocation policy, the plan has recently reviewed asset class and portfolio benchmarks in conjunction with investment consultants, Ennis Knupp. Selected by the board in January, Ennis Knupp is also advising Colorado Pera in updating its investment and rebalancing policies.
Since 2002, Colorado Pera has increased its fixed income assets from approximately 10 per cent to 22 per cent.
The plan has a strategic asset allocation target of: 45 per cent domestic equity, 14 per cent international equity, 25 per cent fixed income, 8 per cent alternative investments, 7 per cent real estate and 1 per cent timber.
According to Katie Kaufmanis, director of communications, Colorado Pera’s allocations reflect a higher amount being invested in bonds to support future liabilities.
At the end of 2003, Colorado was 76 per cent funded when assets were compared with liabilities. Ms Kaufmanis said that further changes to asset allocation are not anticipated for now.
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