St. Joe Co., Jacksonville, Fla., is undertaking an asset-liability study of its $72 million fund, said David F. Childers III, vice president-finance and investor relations and chairman of the retirement plan investment committee.
Mercer, the fund's consultant, is expected to complete the study by the end of July.
The study could recommend asset allocation changes, although “we don't believe” it will lead to new asset classes, Mr. Childers said. The fund was 58% equity and 42% fixed income.
St. Joe is conducting the study as a result of its annuitization of $93 million in liabilities by transferring them, along with $101 million of its pension plan assets, to Massachusetts Mutual Life Insurance.
After the action, the plan is expected to have about $72 million in assets and $28 million in liabilities.
In addition, the fund restructured its investment manager lineup in large part to help fund the Mass Mutual annuity.
SSgA was hired to manage a $42 million Barclays Capital Aggregate Bond index fund, while an existing Russell 1000 stock index fund managed by SSgA was reduced to $15 million from $54 million.
J.P. Morgan Asset Management's $36 million core bond fund was dropped, because it would have fallen below the $10 million minimum. PIMCO's core bond fund was reduced to $1 million, also from $36 million.
The fund reduced a Fidelity active international equity fund to $5 million from $19 million; a Wellington active domestic small-cap core equity fund, also to $5 million from $16 million; and a T. Rowe Price active midcap growth equity fund, to $3 million from $12 million
The fund's cash allocation was reduced to $1 million from $2 million.
“We might be sending (more) money back to PIMCO,” depending on the results of the study, Mr. Childers said.
