Iowa Municipal Fire & Police Retirement System, West Des Moines, raised Schroder Investment Management’s global tactical asset allocation portfolio by $100 million, taking funding from two other GTAA managers, said Terry Slattery, executive director.
The move raised Schroder’s allocation to $150 million.
The $2.3 billion pension fund reduced portfolios managed by Grantham, Mayo, Van Otterloo Co. and J.P. Morgan Asset Management by $50 million each, leaving them with $280 million and $270 million, respectively.
Schroder, which was hired last year, has “done well and the board felt comfortable in reallocating assets from the (fund’s) other two GTAA managers,” Mr. Slattery said.
“The whole point in having three (GTAA) managers is for them to complement each other and provide diversification, and in order to do that more effectively they needed to have a closer range of assets they manage,” Mr. Slattery said.
Mr. Slattery described the GTAA style of JPMAM as a risk taker, GMO as conservative and Schroder as in the middle.
Summit Strategies Group, the pension fund’s investment consultant, assisted.
