Sarasota (Fla.) Police Officers' Pension Fund invested $39 million in the PIMCO Total Return II mutual fund and $11 million in a J.P. Morgan Fleming commingled real estate fund and hired Buckhead Capital to run $6 million in active domestic small-cap value equities, said Benita Saldutti, administrator. Funding will come from rebalancing - midcap equities were trimmed, and the fixed-income portion of three balanced portfolios was eliminated in May - and from terminating 1838 Investment, which ran a $30 million active domestic large-cap core equity portfolio for the $112 million plan, she said. The changes follow an asset allocation study that added small-cap value equity and real estate allocations, she said. Merrill Lynch assisted.
The new asset allocation is 55% large-cap equity; 25% fixed income, down from 35%; 5% midcap equity, down from 10%; 10% real estate and 5% small-cap equity.