Town of Fairfield (Conn.) hired Evaluation Associates as general consultant for its $230 million defined benefit plan, confirmed Kenneth A. Flatto, a plan trustee.
Evaluation Associates replaces NEPC, which was terminated in mid-January. The town filed a lawsuit in late February against NEPC seeking damages from the $42 million loss from feeder funds that invested in Bernard L. Madoff Securities' trading strategies during NEPC's tenure.
Mr. Flatto said he expects that Evaluation Associates' contract will be finalized by the end of the month and that the firm will immediately begin a full asset allocation and manager review.
We want them to look at our asset allocation and managers and let us know if they recommend any changes, Mr. Flatto said.
Both Evaluation Associates and RogersCasey, the other finalist, told trustees in their presentations that the plan's asset allocation is light when it comes to inflation-oriented investments such as TIPS and commodities, Mr. Flatto said.
Mr. Flatto said possible manager hires could be immediately funded because the plan has about $45 million in hand as a result of rebalancing managers in the existing portfolio back to their targets.