Kansas City (Mo.) Firefighters' Pension System hired Franklin TempletonTempleton and Pioneer Investments to run $50 million each in active multisector fixed income, confirmed Richard Boersma, executive officer of the $460 million pension fund.
The hirings are a result of a formal review of the pension fund's fixed-income portfolio conducted by investment consultant Asset Consulting Group.
Franklin Templeton's portfolio has a global emphasis, while Pioneer's has more of a domestic emphasis, said Mr.Templeton's portfolio has a global emphasis, while Pioneer's has more of a domestic emphasis, said Mr. Boersma.
Partial funding comes from the termination of active domestic core-plus fixed-income manager Western Asset Management. WAMCO ran $85 million. After the review, the fund decided to eliminate core-plus strategies.
The rest of the funding comes from the reduction of passive domestic core fixed-income manager Northern Trust's portfolio, leaving it with $15 million.
The review's recommendations included eliminating core-plus and reducing passive core strategies.