Iowa Municipal Fire & Police Retirement System, West Des Moines, named Pacific Investment Management Co., Schroder Investment Management, William Blair & Co. and Wellington Management as finalists in a search for a manager to run $100 million in a global tactical asset allocation strategy, said Terry Slattery, the pension fund's executive director.
The board is seeking to hire a single manager and could make a decision at its April 10 meeting.
The search is a result of the $2.16 billion pension fund increasing its allocation to global tactical asset strategies to 35% from 30%.
Funding comes from reducing the pension fund's private equity allocation to 15% from 20%. Funding will come gradually because of liquidity constraints through distributions as well as rebalancing of public market asset classes, Mr. Slattery said.
In addition, the board moved $70 million in a Treasury inflation-protected securities index fund managed by State Street Global Advisors to a Barclays U.S. Aggregate index fund also managed by SSgA.
“The board believes we can get a get a better return from a broader fixed-income product,” Mr. Slattery said. “The board doesn't see any increase in inflation on the horizon.”
Summit Strategies Group, the pension fund's investment consultant, assisted with the changes.