Knoxville (Tenn.) City Employees' Pension Fund approved a revised investment policy that would allow investments in some alternative asset classes, according to Michael A. Cherry, executive director. The board of the $480 million plan approved the new language at its Nov. 10 meeting; the policy is subject to approval of the City Council. Mr. Cherry said the policy specifically calls for a 7% target allocation to hedge funds, which would be invested in funds of funds. The policy would also allow for investments in private equity, which would fall under the plan's 10% real estate allocation.
In the first quarter, the board would likely discuss potential shortlist searches with consultant Summit Strategies, pending council approval, which fund officials hope to receive in December, Mr. Cherry said. It's too early to discuss further details, he added.
