Iowa Public Employees eliminates smart beta target as it moves to reduce volatility, weather downturns

The Punchline

The Iowa Public Employees Retirement System has eliminated its smart beta target, reflecting a strategic pivot towards increasing allocations in public credit, core, and core-plus fixed income. This move aims to reduce overall portfolio volatility and prepare for potential market downturns.

Why You Should Read This

The article offers insights into the evolving strategies of major public pension funds, making it relevant for those tracking trends in asset allocation and risk management.

Who This Is For

This article is primarily targeted at institutional investors, asset managers, and financial advisors interested in pension fund strategies and allocations.

Investor Implications

For investors, the shift in allocation priorities may indicate a broader trend among institutional investors to favor more stable fixed-income assets over volatile alternatives. This could lead to increased demand for public credit assets and reshape market dynamics in the fixed-income sector.