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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.

Investment Policy approved on May 14, 2020

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The asset allocation policy is as follows:

Asset Allocation Policy

Core Investments 43%
Strategic Investments 35%
Private Markets 22%
Total 100%
Total Plan Average Annualized 10-year Performance Expectation* 8.2%
Average Annualized 10-year Volatility* 10.5%

* Allocation, performance expecation, and risk projection are based upon Marquette Associates', the retirement system's investment consultant, January 2020 assumptions.

Core Investments Allocation Policy

U.S. Equity 27.8%
Non-U.S. Equity 23.3%
Global Fixed Income 23.3%
Core Real Estate 18.6%
Core Infrastructure 7.0%
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.