City of Clearwater (Fla.) Pension Plan will seek voter approval in November on four changes to its asset allocation, said Steve Moskun, cash and investments manager. Kalson & Associates, which the $505 million fund hired for a one-time asset allocation study, recommended 10% of total assets be put in REITs, 10% in high-yield bonds and 5% in emerging markets equity to further diversify investments and increase returns. The three asset classes are new to the plan. The consultant also recommended increasing the plan's overall equity allocation to 70%. The current allocation is 65% equities and 35% fixed income.
Plan officials will select a consultant from an internal shortlist to assist in selecting REITs and an emerging markets manager; there are no plans to immediately hire a high-yield manager. Callan Associates, the fund's performance measurement firm, and general consultant Charles D. Hyman & Co. will be considered for the one-time consulting position. The plan will not issue RFPs for any of the upcoming hires; managers will be selected from a shortlist.
It's too early to say how the new asset classes will be funded, Mr. Moskun said.