Knoxville City Employees taps Parametric, Schroders for equity and fixed income

Knoxville (Tenn.) City Employees Pension Fund hired Parametric Portfolio Associates to manage about $32 million in a defensive equity strategy and Schroder Investment Management to run about $11 million in a core-plus fixed-income strategy, said recently released board meeting minutes.

The $540 million pension fund made the hires as the result of approving new target allocations to defensive equity and core-plus fixed income of 4% and 2%, respectively. The new targets came as a result of the elimination of the 6% target to high yield. Further information on the high-yield manager was not available.

Other targets, which remain unchanged, are 14.5% domestic large-cap equities; 12.5% developed markets international equities; 10% real estate; 7.5% energy/commodities; 6% each, core fixed income, emerging markets equities, and long-term fixed income; 5% each, emerging markets debt, global fixed income, hedge funds, private equity and risk parity; 3.5% domestic small/midcap equities; 2% Treasury inflation-protected securities; and 1% cash.

Kristi Paczkowski, executive director, did not return phone calls seeking further information by press time.