Emergency Services and State Super (ESSSuper) has increased its exposure to alternatives-growth assets following a review of its investment options.

From 1 July, the balanced option now has a 27 per cent target allocation towards alternatives-growth assets, up from the previous target of 11.5 per cent.

The growth option target is up to 35 per cent from a previous 12.5 per cent.

The latest update for July showed a current allocation of 26 per cent in the growth option and 21.5 per cent in the balanced option.

The review was conducted by Victorian Funds Management Corporation and Watson Wyatt Worldwide and highlighted that ESSSuper should consider the amount of listed investments it held and their volatility.

"The fund plans to diversify further by investing in products that look to provide a growth return but with lower volatility. This point has been driven home by the events of the past 12-18 months," ESSSuper said.

Alternatives-growth assets currently include investment-grade credit, listed property, hedge funds, private equity and infrastructure. The fund has also flagged an interest in timber and commodity investments.

ESSSuper has also made the decision to move from 50 per cent Australian shares and 50 per cent international equities to around 40 per cent Australian shares and 60 per cent international shares.

"Being long-term strategic asset allocations, the changes may take 12 months or more to fully implement given current valuations and market conditions," it said.