Police and Firemen's Disability & Pension Fund of Ohio, Columbus, added an emerging markets mandate as a result of an asset allocation study.
The new asset mix is 41% domestic stocks, 35% U.S. bonds, 10% international equity, 8% real estate, 5% emerging markets and 1% alternatives. The $7 billion fund's allocation to bonds decreases by 2.5 percentage points and real estate by 1 percentage point. The alternative mandate will increase by 0.5 percentage points. The previous asset mix also had a 2% allocation to commercial mortgages that will likely be considered part of the fund's equity investments.
The board has not yet decided when it will begin the process of hiring managers to fill the mandate, said Bill Butler, deputy executive director. Wilshire Associates assisted.
The $90 billion New York Common Retirement Fund, Albany, allocated $200 million to three existing emerging markets managers, according to state Comptroller H. Carl McCall, sole trustee of the fund. Morgan Stanley received $50 million; Schroder Capital received $75 million; and $75 million was allocated to Templeton. Allocations will be funded from cash. As of July 31, Morgan Stanley managed $134 million; Schroder, $174 million; and Templeton, $189 million.
Atlantic Asset Management, an investment grade bond manager with $2.1 billion in assets, and Fountain Capital Management, a high-yield bond manager with $400 million in assets, have formed a new business partnership.
As a result of the partnership, Fountain will be able to manage high-yield bond accounts for Atlantic's clients and Atlantic will run traditional fixed-income portfolios for Fountain's clients. Each firm will maintain its name and identity with respect to client relationships.
Axe-Houghton Associates might close its small-cap growth equity portfolio to new clients before yearend, said Robert Follert, executive vice president and director of marketing. The portfolio has $550 million in assets and is expected to reach the $600 million cut-off mark within three months, he said.