San Antonio (Texas) Fire & Police Pension Fund hired Wellington Management to run an active emerging market debt portfolio, according to A.C. Berry, investment analyst at the $1.71 billion system. The size of the allocation and the funding source have not been determined.
The fund's board of directors also approved adding a portable alpha strategy to enhance the system's $541 million fixed-income allocation, Mr. Berry said. Fund officials plan to meet with the system's consultant, Consulting Services Group, next week to work on the strategy.
Separately, fund officials terminated Pacific American Securities as commission recapture agent. The system's money managers used its other recapture agent, Donaldson & Co., more than PAS, and system officials decided having two agents did not provide the level of income expected.
The board also removed active domestic small-cap value equity manager Rothschild Asset Management from its watchlist after the firm outperformed its Russell 2000 value index benchmark by 206 basis points in the fourth quarter and 414 basis points for the 12 months ended Dec. 31, Mr. Berry said. Rothschild runs $76.7 million for the system.
MacKay Shields, which runs about $61.9 million in high-yield fixed income for the system, was placed on watch because portfolio manager Don Morgan resigned, Mr. Berry said. "It's just a safety-net feature for the fund," he said.
