Dallas Police & Fire Pension System allocated $100 million total to two emerging markets managers, said Kelly Gottschalk, executive director of the $2.1 billion pension fund, in an email.
The pension fund hired RBC Global Asset Management to manage an initial $50 million in emerging markets equity and Ashmore Group to manage an initial $50 million in its emerging markets blended debt fund. Funding for the RBC portfolio could not immediately be learned. Funding for Ashmore will come from terminating a $19 million investment in Ashmore's emerging markets local currency bond fund and from cash.
The termination of the investment in the local currency bond fund was originally approved in December to raise cash and improve the plans' liquidity.
The pension fund has a 5% target to emerging markets equity and no other dedicated emerging markets equity managers. Its emerging markets debt target is 6%.
Investment consultant NEPC assisted with the hires.