Springfield (Mo.) Police Officers’ & Firefighters’ Retirement System hired State Street Global Advisors to run about $9.6 million in passively managed TIPS, confirmed Ken Homan, president of the $193 million pension system’s board of trustees.
The hire is the first step in implementing the retirement fund’s new asset allocation, recommended by investment consultant Segal Rogerscasey that the board approved in December, said Mr. Homan in a telephone interview.
Next, the retirement system will conduct an invitation-only search sometime in the second quarter for hedge fund-of-funds managers to run about 10%, or $19.3 million. It’s the first hedge fund-of-funds allocation for the retirement system, Mr. Homan confirmed.
The new target allocations for the system are: 16% domestic equity; 15% developed market equity; 10% each, long-term fixed income, core fixed income, emerging markets equity and hedge funds of funds; 9% developed market fixed income; and 5% each, inflation-linked fixed income, emerging markets debt, real estate and commodities.
The system’s previous targets were 35% domestic equity; 24% core fixed income; 20% developed market equity; 11% developed fixed income; and 5% each, real estate and commodities.
Mr. Homan had no further information on further implementations or whether any managers will be terminated.