New CIO Seth Kelly is hiking the fund's asset allocation to fixed income. Seth Kelly, the investment chief at the Pennsylvania State Employees’ Retirement System (SERS), joined the pension fund just half a year ago, but he’s already overseeing some big changes. Board members at the $31.5 billion pension fund last month announced that they are increasing their fixed income allocation in order to move the pension fund toward a liability-driven benchmark. The trustees hope that the changes to the investment policy statement (IPS), including a new 7.8% target for long duration fixed income, as well as lowering the public equity, private equity, and real estate allocations, will help the fund increase cash flow and lower risk.