Iowa Municipal Fire & Police Retirement System, West Des Moines, hired Schroder Investment Management to manage $50 million in global tactical asset allocation said Terry Slattery, executive director.
Schroder’s hire follows a search earlier this year triggered by the $2.1 billion pension fund increasing its TAA allocation to 35% from 30%.
Schroder is expected to invest in a variety of asset classes, including equities, fixed income, currencies and commodities, “to get the best returns wherever the market is heading,” Mr. Slattery said.
Funding will come in part from terminating Dimensional Fund Advisors, which manages $25 million in active emerging markets equities, Mr. Slattery said. He said the pension fund is dropping Dimensional because the firm is the smallest public markets manager in terms of assets under management for the pension fund, Mr. Slattery said, providing no further details.
The remainder of the funding will come from a rebalancing among other equity mangers, Mr. Slattery said. The pension fund hasn’t determined which managers will be affected; none will be terminated, he said.
The pension fund plans to add to the funding with distributions from private equity to eventually raise to it about $100 million, Mr. Slattery said.
Summit Strategies Group, the pension fund’s investment consultant, assisted in the search.