Kern County Employees Retirement Association, Bakersfield, Calif., completed an asset-liability study and is considering a search for a domestic fixed-income manager in the first quarter. The new mandate will allow investing in international sovereign bonds, said David Deutsch, retirement administrator. Funding for the new $46 million portfolio will come from Fiduciary Trust, which currently runs $46 million in global fixed-income for the $1.6 billion defined benefit plan. Mr. Deutsch said no decision has yet been made to terminate Fiduciary. Further results of the study included reductions in real estate and emerging markets allocations and an increase in the funds alternative investments allocation to 4% from 0.5%. Mr. Deutsch did not comment on the reductions.