Wisconsin raises private equity target to 6%

In a move to shift away from equity risk, The State of Wisconsin Investment Board has raised its private equity and real estate targets 1% each and doubled the target of its tactical multi-asset allocation.

The State of Wisconsin Investment Board has adjusted the asset allocation of its core fund for 2009 by reducing its equity and fixed income exposure in favor of alternatives.

The US equities target has been reduced by 3 percent and fixed income by 1 percent. The pension has raised the private equity and real estate targets to 6 percent each up from 5 percent. The multi-asset target, which opportunistically includes equity, debt, real estate, natural resources, private equity and money market instruments, was doubled to 4 percent.

At the end of October, Wisconsin’s real allocations were 7.4 percent to private equity, 6.3 percent to real estate and 1.7 percent to multi-asset.

The pension is “looking to provide further diversification away from equity risk premium”, a pension spokesperson told PEO.

The changes will be effective on 1 January and the adjustments will be concluded by the end of 2009.