El Paso (Texas) City Employees' Pension Fund hired AQR Capital Management to run $17 million in emerging markets equity, said Robert Ash, executive director.
Funding is coming from the liquidation of Mellon Capital Management's emerging markets index fund. Mr. Ash said the reason for the liquidation was that the board wanted a more active strategy.
The $723 million pension fund's current allocation to international equity is 23.5% and its target is 24%.
Separately, the pension fund is considering searching for its first master limited partnership manager. Investment consultant Callan Associates is working on asset allocations and any resulting search will be conducted by Callan, subject to the board's approval, Mr. Ash said in an e-mail.