Oklahoma Police Pension & Retirement System, Oklahoma City, plans to issue an RFP sometime this year for the $1.7 billion system's first pure commodities manager, said Steve Snyder, executive director and chief investment officer.
Mr. Snyder said the search will probably consist of two managers running a total of 3.5% of the system's portfolio.
RFPs also could be issued for managers for opportunistic real estate or possibly a closed-end private equity strategy, but not until late 2012, Mr. Snyder said. He anticipates hiring at least two managers for the strategy.
The retirement system's board approved an increase in its real asset allocation in July to 15% from 5%, with 5% each in commodities, core real estate and opportunistic real estate. Funding came from a reduction in fixed income to 25% from 30% and a reduction in total equity to 60% from 65%. Specifically, the money will be reallocated from core bonds, to 7.5% from 10%; absolute return, to 10% from 12.5%; and U.S. large-cap equity, to 15% from 20%, Mr. Spencer said in an e-mail.
Separately, the board in February will create a shortlist of managers in the retirement system's search for a long/short equity hedge fund manager to run $80 million to $90 million and will interview finalists in March, Mr. Snyder said.
An RFP was issued Dec. 6.
A manager is expected to be chosen in April.