Bristol (Conn.) General Retirement System plans to conduct an asset allocation study of its $139 million retirement fund, $110 million police benefit fund and the $100 million firefighters benefit fund, said Gayle W. Levesque, accounting supervisor. The study will be conducted by consultant Merrill Lynch, which recently was retained, pending contract negotiations, she said. The system probably will change its current asset allocation, but it is too soon to predict manager changes, Ms. Levesque said.
Separately, the system hired INVESCO to manage $7 million in active international value equity, Ms. Levesque said. Funding came from Nicholas-Applegate, which managed $7 million in active domestic midcap growth equities but was terminated because of disappointing performance in growth equities as a whole, she said. Rick Shaughnessy, head of communications for Nicholas Applegate, said the firm had a great working relationship with the city of Bristol and hopes to work with the plan in the future. Nicholas Applegate "understands that (the system) had an over-abundant situation and wanted to take some assets out of equities and into a more conservative route.
When the study is finished, the system will increase the INVESCO portfolio to $14 million; funding will come from shifting assets from its two other active international equity managers, Simms Capital and Marvin & Palmer, and from rebalancing. Simms currently manages $20 million in a growth style, and Marvin & Palmer runs $17 million in a fund of funds; each of the three will run $14 million, she said.