US - The Ohio Public Employees Retirement System (OPERS) has received a recommendation to allocate 5% to private equity in its healthcare fund.
In making the recommendation, Mercer said transitioning from the current to the recommended investment strategy was projected to take around seven years, assuming implementation began in 2008.
In the interim, while private equity commitments were being funded, Mercer said the remainder of the target allocation to private equity should be held in US equity.
The recommendation came after the organisation’s investment committee decided in July to shift to a strategic asset allocation incorporating a 60% equity plus alternatives and a 40% fixed income mix would be appropriate for the US$13.1bn healthcare portfolio.
In May 2007, Global Pensions reported that OPERS ditched Ennis Knupp & Associates as its consultant in favour of Mercer.
Investors, driven by depressed interest rates, slower global economic growth and rich equity market valuations are examining non-traditional investment opportunities.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up