Lincoln (Neb.) Fire & Police Retirement System restructured the $160 million fund's asset allocation, confirmed John Cripe, compensation manager and plan administrator. Officials increased the plan's active domestic midcap value equity portfolio to 17% of assets from 11%; active global equities to 10% from 6.6%; and hedge funds to 7% from 5.7%. Assets will be distributed to existing managers; no RFPs are planned.
Funding will come from decreasing the active small-cap value equity portfolio to 3% of assets from 13% and the real estate allocation to 10% from 12.8%, Mr. Cripe said. He said he didn't know yet whether any small-cap managers would be terminated. The fund's current active small-cap value managers are: Aegis Asset Management, which runs $11 million for the fund; Royce & Associates, $9 million; Hartland Asset Management, $5.5 million; and Boston Advisors, $4.5 million.
Mr. Cripe said CNL Fund Advisors, which currently manages roughly $3 million in real estate, will likely be terminated. JPMorgan Asset Management and RREEF America are the system's other real estate managers
Other asset classes will remain unchanged: Large-cap growth and value, 3% each; midcap growth, 3%; small-cap growth, 3%; international equity, 20%; and fixed income, 20%. The remainder will go to cash.
No consultant assisted.