IBEW Local 82, Dayton, Ohio, changed the asset allocation model for its $74 million joint pension fund and $22 million money purchase plan, adding international equity, real estate and high-yield fixed income, said Josh Smittkamp, consultant with Dover Investment. The plans, whose investments mirror each other, now have 50% in domestic equity, down from 60%; 32% in domestic fixed income, from 40%; 10% international equity, 5% real estate and 3% high-yield fixed income.
As a result of the shift, the money purchase plan hired active domestic large-cap managers Brandywine to run $6 million in value equities and Ark Asset to run $6 million in growth equities, said Dennis Wells, administrator. Also, $1.8 million was committed to the American Funds EuroPacific Growth A, less than $1 million each to the Baron Growth and Columbia High Yield A funds, and $1 million split evenly between the ASB Real Estate Fund and the Build Fund of Ohio, he said.
Partial funding came from dropping Arks $6 million portfolio in active domestic small-cap value equities, and terminating Harris Bretall Sullivan & Smith, which handled $5 million in active domestic large-cap growth equities; for performance, Mr. Wells said. Additional funding came from rebalancing, he said. Ashley Inbody, director of internal marketing at Harris Bretall, did not return calls seeking comment by press time.