The City of St. Louis Employees Retirement System's board voted Monday to invest $25 million in hedge funds of funds, confirmed Mary Lou Mullen, employee benefits manager. Board members hope the initial foray into alternative investments will help boost returns, she said. Consultant Summit Strategies Group will likely conduct an invitation-only search.
The $500 million pension fund currently allocates 60% of assets to equities and 40% to fixed income. Funding may come from fixed income, but no decisions have been made, Ms. Mullen said. Further details will not be decided until the board meets again July 31.