Goldman Says Public Pensions Are Hunting for Investments Beyond the U.S.

U.S. public pensions are boosting allocations to emerging-markets debt and international equities, recognizing that they can’t hit targets for investment returns by staying in domestic assets, a report shows.

Among the top 50 public plans, about half have dedicated allocations to emerging-market debt, while about 16 have exposure through other fixed-income mandates, Goldman Sachs Group Inc.’s asset manager said Tuesday. Some funds are shifting away from strategic bets on U.S. equities in favor of international stock investments, according to the report.