Iowa Municipal Fire & Police Retirement System, West Des Moines, is searching for a manager to run $105 million in a global tactical asset allocation strategy and for managers of private equity funds of funds to manage up to $100 million, said Terry Slattery, executive director.
Summit Strategies Group, the $2.1 billion pension fund's investment consultant, is assisting. Managers of GTAA strategies and private equity funds of funds may contact Summit to be considered in either search, Mr. Slattery said.
The pension fund is seeking to hire one GTAA manager and up to three private equity fund-of-funds managers, Mr. Slattery said.
The GTAA search is a result of the pension fund's raising its global tactical asset allocation to 35% from 30%.
The retirement system is funding the change by reducing its private equity allocation to 15% from 20%.
Even though it is reducing its private equity allocation, the pension fund plans to commit $100 million this year, an amount necessary to keep up with the new level considering maturities of existing funds, Mr. Slattery said, adding the commitments for this year would be much higher had the pension fund not reduced its private equity allocation.
In GTAA, GMO and J.P. Morgan Asset Management now manage about $300 million each for the pension fund, Mr. Slattery said. The retirement system expects to fund the new GTAA manager gradually based in part on the timing of the reduction in private equity.
In private equity, Siguler Guff & Co. manages $160 million in investments and has $300 million in commitments; HarbourVest Partners, $95 million in investments and $223 million in commitments; Adams Street Partners, $75 million in investments and $123 million in commitments; and Neuberger Berman Group, $32 million in investments and $50 million in commitments.
Summit plans to present GTAA finalists to the pension fund's board meeting Feb 27 or April 10. Depending on the initial presentation, the board is not expected to make a decision until the April or May 22 meeting.
For private equity, Summit plans to bring candidates to the board throughout the year to make the commitments by the end of this year.
The pension fund made both allocation changes to improve liquidity.