Ohio Police & Fire Pension Fund, Columbus, will search for active domestic equity managers before the end of the year, spokesman David Graham said.
The $14.8 billion pension fund will issue RFPs likely before the end of the year following the board’s approval at its Wednesday meeting of a change in the overall structure of the pension fund’s $3.5 billion domestic equity allocation.
The new domestic equity structure will be 50% portable alpha strategies, 40% passive large cap, 7.5% traditional active small cap and 2.5% synthetic small cap. Currently, the structure is 50% passive large cap, 40% portable alpha and 10% traditional active small cap.
The pension fund’s board at its Aug. 26 meeting will review the parameters of the searches for an active small-cap core equity manager, and an alpha-generating strategy that would complement existing portable alpha managers. Asset sizes for the searches have not been determined yet. A specific timeline for issuing the RFPs has yet to be determined, but Mr. Graham said it is likely they will be issued before the end of the year.
The pension fund will also terminate three managers, partially due to the structural changes.
The pension fund will terminate due to underperformance Columbia Threadneedle Investments, which runs $442 million in active domestic small-cap core equities and has been on watch for underperformance since May; and AQR Capital Management, which runs $311 million in a global macro, portable alpha strategy and has been on watch for underperformance since March.
Columbia Threadneedle spokesman Carlos Melville did not return a phone call seeking comment; officials at AQR Capital Management did not respond to a request for comment by press time.
Due to personnel changes, the pension fund is also terminating Investcorp, which runs $221 million in a market-neutral, portable alpha strategy.
The overall actual domestic equity allocation as of May 31 was 23.8%. The long-term target for domestic equities is 16%.
General investment consultant Wilshire Associates is assisting.
Separately, the pension fund committed up to $40 million to RRJ Capital Master Fund II, an Asian buyout fund.
Private markets consultant TorreyCove Capital Partners assisted.
