State Board of Administration greenlights asset allocation revisions for FRS pension plan
Revisions to the Florida Retirement System (FRS) Pension Plan were approved by the State Board of Administration (SBA) during its meeting on Wednesday.
With past approaches driven by accommodative monetary policies that favored risk-taking, the newly approved investment strategy is adapted for a fiscal environment characterized by a higher natural rate of interest and a reduced equity risk premium.
Key changes in the asset allocation include reducing global equities from 53 percent to 45 percent, elevating core fixed income from 18 percent to 21 percent, and introducing the Active Credit Asset Class with a 7 percent target allocation.
Further, private equity saw an increase from 6 percent to...
