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MFPRSI. Municipal Fire & Police Retirement System of Iowa

Asset Allocation

The Board of Trustees reviews the allocation of the investment portfolio as part of its annual review of its investment portfolio in its entirety. The review for calendar year 2019 is currently ongoing. As of February 22, 2018, the asset allocation policy is as follows:

Asset Allocation Policy

Core Investments 40%
Strategic Investments 35%
Real Assets 10%
Private Markets 15%
Total 100%
Total Plan 10-year Performance Expectation* 7.7%
Standard Deviation* 12.5%

* Allocation, performance expecation, and risk projection based upon the retirement system's previous investment consultant, Summit Strategies' 12/31/16 assumptions. MFPRSI's current investment consultant, Marquette Associates, is reviewing the 2019 allocation, performance expectations, and risk projections with the Board.

Core Investments Allocation Policy

U.S. Equity 31%
Non-U.S. Equity Target 31%
Global Fixed Income 25%
Master Limited Partnerships (MLPs) 13%
Total 100%

Strategic Investments Allocation Policy

U.S. Equity 37.5%
Non-U.S. Equity Target 37.5%
Global Fixed Income 25.0%
Total 100%

Caveats:

  1. In the absence of suitable opportunities within a specific market, the funds shall be directed to the other components within the debt or equity category.  Due to the fluctuation of market values, positioning within ±5% of the target shall constitute compliance with the policy
  2. A review of the allocation policy shall occur periodically to allow the Board of Trustees to consider the effect of any changes in market conditions or of the expectations for the retirement system.