Ever more “opportunistic” in the search for return

February 12, 2016

We read this week that South Carolina had restructured its asset allocation to introduce new categories of asset classes in a drive towards more diversification.  The $28.2 bn public fund has added new asset classes to its target allocation including portable alpha; equity options; infrastructure; real estate investment trusts; commodity trading adviser/managed futures hedge funds; and complex investments, such as commodities, Treasury inflation-protected securities and insurance-linked securities. See http://www.pionline.com/article/20160204/ONLINE/160209913/south-carolina-revamps-asset-allocation-adding-new-strategies.

This move to introduce more complexity presents an interesting counterpoint to a trend towards less active management (in favor of passive) and lower fees.