Fairfax (Va.) County Uniformed Retirement System is conducting an asset-liability study, and the $680 million Fairfax County Police System may conduct a similar study later this spring, said Laurnz A. Swartz, executive director. New England Pension Consultants is assisting the $749 million uniformed plan.
Both systems assume a 7.5% long-term rate of return on assets, which Mr. Swartz believes is "still supportable"; the two plans will also consider whether to add exposure to alternative investments. Mercer Investment Consulting is the police plan's consultant.
Separately, both systems are monitoring PIMCO because of market timing accusations, Mr. Swartz said. The firm runs an $81 million total return bond portfolio for the uniformed system and $80 million in a stocks-plus enhanced equity strategy for the police fund. "We don't have a formal watch process, but we are continuing to monitor what is going on," Mr. Swartz said. The police plan continues to monitor Janus, which manages $51 million in aggressive growth equities, also in light of market timing allegations, he said. "Our level of concern is a little bit higher than normal, given what is going on, but we have not reached any conclusion," he said.