Oklahoma Police Pension & Retirement System, Oklahoma City, is expected to launch an RFP in the first quarter of 2012 for a commodities manager to run about $60 million, confirmed Steven Snyder, executive director and chief investment officer of the $1.8 billion system.
The system in June created three new asset classes — 5% each for commodities, opportunistic real estate and core real estate — which replace the previous 5% real assets allocation. It also established a new 5% allocation to emerging markets equity. Global fixed income was trimmed to 15% from 17.5%; low-volatility strategies to 10% from 12.5%; small-cap and midcap equities to 5% from 10%; and large-cap equities to 15% from 20%. Unchanged asset classes were long-short equity at 15%, and international equity and private equity at 10% each.
No managers will be terminated, Mr. Snyder said in a telephone interview.
Mr. Snyder said the new asset classes are intended to manage inflation risk. “Inflation is low now,” he said. “But we don't look at a two- or three-year time horizon.”
Separately, the system committed $10 million to Siguler Guff Distressed Real Estate Opportunities.