The $2.3 billion Philadelphia Municipal Pension Fund added two asset classes and dropped one as part of a recently completed asset allocation study.
Joe Herkness, executive director, said the fund allocated 8% to international bonds and 5% to emerging market investments. Two convertible bond managers, Wellington Management Co. and Nicholas-Applegate Capital Management, have been notified they will be terminated because the fund is dropping that asset class.
The fund also reduced its domestic stock allocation to 30% (from 42%), and cut domestic bonds to 22% of total assets from 30%. Real estate was cut in half, to 5% of assets, and a 10% tactical asset allocation component was added.
International stocks were pared slightly to 15% from 16%. The fund also will have 3% cash and 2% in alternative investments.
Although the fund's goal remains to drop more than four or five money managers from around 30 currently, trustees may decide at an Aug. 24 meeting to hire new managers for the new asset classes, Mr. Herkness said.