San Antonio Fire & Police Pension Fund approved a new asset allocation and terminated two managers, according to recently released minutes of the March 27 board meeting.
The board approved investment consultant NEPC's recommendations to decrease the domestic large-cap equity allocation by four percentage points. The allocations to international equity, private equity, emerging markets equity and private debt all increased by one percentage point.
The asset allocation as of Sept. 30 was 20.3% large-cap equity, 15.2% international equity (including emerging markets), 11.7% domestic fixed income, 11.2% real estate, 10.1% global fixed income, 7.8% hedge funds, 6.6% private equity, 5.3% domestic small-cap equity, 5.2% real assets, 2.1% private debt and the rest in cash.
Also, the board terminated Century Management and Valley Forge Asset Management. As of Sept. 30, Century managed about $68 million in domestic all-cap equity and Valley Forge, $66 million in domestic large-cap core equity.
The $2.3 billion pension fund will transfer $50 million each to LSV Asset Management's international equity strategy and Acadian Asset Management's emerging markets strategy. The rest will be transferred to AQR Capital Management's risk-parity strategy as a placeholder for future private equity and debt capital calls.
LSV and Acadian managed about $94 million and $78 million, respectively, as of Sept. 30.
Matthew O'Reilly, chief investment officer, did not return a telephone call by press time.