City of Allentown , Pa., hired Vanguard to run $15 million in the...

City of Allentown, Pa., hired Vanguard to run $15 million in the Total Stock Index fund and Lazard Asset Management to manage $6 million in active domestic small-cap core equities, said Michael Cosack, managing director at consultant PFM Advisors. Funding came from rebalancing, he said. Officials for the $113 million pension plan added the Vanguard fund to reduce cost and get a broad market return; the small-cap core portfolio, a new style, was added for diversification, he said. The plan’s asset allocation is 50% equity and 50% fixed income. PFM advised.