Houston Firefighters sets $210 million in low-volatility equity, ETF allocations

Houston Firefighters’ Relief and Retirement Fund hired Schroders and AllianceBernstein (AB) to run up to $100 million each in low-volatility equity, pending successful and final legal negotiations, said investment committee meeting minutes provided by the pension fund.

The initial allocations would be $40 million to $50 million to Schroders and $20 million to $25 million to AllianceBernstein, the minutes said.

Funding sources were not disclosed.

Separately, the $3.8 billion pension fund will invest up to $10 million total in a 75%/25% blend of two BlackRock (BLK) iShares U.S. exchange-traded funds — the EDGE MSCI Multifactor USA ETF, which invests in large and midcap stocks, and the EDGE MSCI Multifactor USA Small-Cap ETF.

The pension fund will also invest up to $10 million in State Street Global Advisors’ SPDR Gold Trust ETF. The pension fund will invest $3 million initially.