Elgin (Ill.) Police & Fire Pension System selected three equity index funds and next might look for active fixed-income managers, said Craig Larsen, a trustee for the $36 million fund.
Elgin officials seek by year end to invest $4 million to $5 million in First Chicago NBD's Pegasus S&P 500 index fund, $3 million in Vanguard's small-cap stock index fund, and about $1 million in Dreyfus' midcap equity index fund, Mr. Larsen said.
Currently, 11% of the fund is with active fixed-income managers Guardian Capital and Hartford Insurance, but the fund hasn't decided yet how much it might raise its active fixed-income allocation, he said.
The assets will be funded with cash and with assets redeemed from equity variable annuities managed by Phoenix Duff & Phelps, Guardian Capital and Hartford, he said.
Changes in Illinois state law allowed the movement from annuities into mutual funds.