New York City Police Department and New York City Fire Department...

New York City Police Department and New York City Fire Department pension funds have terminated Investment Advisers Inc., which managed $363 million in an active fixed-income strategy for the $15.4 billion police pension and $125 million for the $5.6 billion fire pension, said Jane Levine, deputy comptroller for pensions. The money will be shifted to Lincoln Capital, which already manages assets for the New York City system. The firings were due to poor performance and staff turnover, Ms. Levine said. IAI did not return calls seeking comment by press time. The Fire Department also terminated Clemente Capital, which was running $37 million in emerging markets, for the same reasons. Those assets will be moved to an existing manager, which could not be named until the contracts are signed. Tom Prapas, managing director at Clemente, said: "We were disappointed that we couldn’t do a better job for the city. Part of the problem was our style of investing was at a disadvatange, and we didn’t respond quickly enough. Then the person servicing their account left at that time, and we weren’t in a position to match the offer.’’