Institutional Investors

PennSERS lowers allocation


The $24 billion Pennsylvania State Employees Retirement System will halve its allocation to hedge funds as the long-term target to funds of hedge funds shifts from a current allocation of 17.9% to 9%.

Trustees adopted an updated strategic investment plan that has a greater allocation to fixed-income investments (26%) and stocks (39%) to meet the liquidity needs arising from the projected increase in benefit payouts as the fund matures.

The move comes as trustees are understood to have placed PAAMCO, its largest holding in the absolute return portfolio, on a watchlist following the