Austin (Texas) Police Retirement System approved a new long-term target asset allocation that increases equities and cash, according to recently released minutes of the $506 million retirement system's April 18 board meeting.
The equities target was increased to 45% from 40%; fixed income was decreased to 15% from 20%; combined real estate and timber were reduced to 22.5% from 25%; cash was increased to 2.5% from zero; and alternatives remained at 15%, according to the minutes.
The pension fund's actual allocations as of March 31 were 37.8% equity, 27.6% real estate and timber, 19.1% alternatives, 15.3% fixed income and the rest in cash.
The retirement system's board also redeemed $53 million from three Ashmore Investment Management emerging markets debt portfolios and moved $45 million of the money into the Ashmore Emerging Markets Total Return Fund, a new investment in the fund. It also added another $10 million into the SMH Capital Advisors high-yield fund. The total amount managed by SMH could not be determined by press time.
The pension fund's board also terminated the $8 million CBRE Special Situations Fund for personnel reasons.
Separately, the board hired CDK Realty Advisors to replace Land Baron Investments as general partner on all the real estate limited partnerships in which the retirement system invests.
Sampson Jordan, retirement system CEO, did not return a telephone call by press time for additional information.