New CIO Seth Kelly is hiking the fund s asset allocation to fixed income.
Seth Kelly, the investment chief at the Pennsylvania State Employees’ Retirement System (SERS), joined the pension fund just half a year ago, but he’s already overseeing some big changes.
Board members at the $31.5 billion pension fund last month announced that they are increasing their fixed income allocation in order to move the pension fund toward a liability-driven benchmark. The trustees hope that the changes to the investment policy statement (IPS), including a new 7.8% target for long duration fixed income, as well as lowering the public equity, private equity, and real estate allocations, will help the fund increase cash flow and lower risk.