El Paso (Texas) Firemen & Policemen Pension Fund will likely conduct shortlist searches for bank loans and real estate/real assets, confirmed Robert Stanton, executive director of the $1.2 billion pension fund.
Specific dates for the searches have not been determined, but interested managers may contact investment consultant Summit Strategies Group.
The searches follow a new asset allocation that includes adding bank loans and real assets for the first time.
The new target asset allocation is 22.5% international developed markets equity, 20% core-plus fixed income, 19.25% U.S. large-cap equity, 10% each private equity and real estate/real assets, 8.25% U.S. small-cap equity and 5% each public bank loans and emerging markets equity.
The new allocation was the result of an asset/liability study conducted by Summit.
No managers will be terminated as a result of the new asset allocation.
The previous target asset allocation was 30% fixed income, 24% international developed markets equity, 21% domestic large-cap equity, 9% domestic small-cap equity, 6% emerging markets equity and 5% each real estate and private equity.
Separately, the pension fund returned 17.78% for the year ended Dec. 31, surpassing the policy benchmark of 15.63%.
