Firemen's Retirement System of St. Louis probably will drop its balanced management mandate following the completion of an asset allocation study now under way, said John Brewer, executive director for the $450 million fund.
``I think the balanced mandates will be gone,'' Mr. Brewer said, although he declined to speculate on whether the study would result in manager searches. Mercer, the fund's retainer consultant, is likely to have the study's results and recommendations in September, he said.
The fund now has three balanced managers that oversee about 73% of the fund: Oppenheimer Capital, PanAgora and Trade Street, all of which have a 55% stocks/45% bonds benchmark, he said.
The fund's other managers are: Mississippi Valley Advisors, which manages about 10% of the fund in small-cap U.S. equities; Abacus Financial, which manages 5% of the fund in U.S. fixed income; and Bankers Trust and Scudder, which together manage 12% of the fund in non-U.S. equities.