Iowa Municipal Fire & Police Retirement System, West Des Moines, is searching for global tactical asset allocation managers as it examines the possibility of extending its $677 million multiasset allocation, said Terry Slattery, executive director.
The pension fund, which oversees $2.2 billion, is looking for managers that have different GTAA strategies from its existing three managers — Grantham, Mayo, Van Otterloo; J.P. Morgan Asset Management; and Schroder Investment Management — potentially for further diversification, Mr. Slattery said.
Managers interested in consideration for inclusion in the search should contact Phineas W. Troy, vice president at Summit Strategies Group, the pension fund’s investment consultant, to get in the firm’s database of managers, Mr. Slattery said.
Summit is putting together a shortlist of candidates to make presentations to the pension fund’s board at its Aug. 24 meeting to educate trustees about other GTAA strategies, Mr. Slattery said.
The pension fund is not issuing an RFP.
The search’s focus includes identifying managers using derivatives to gain exposures to asset classes, Mr. Slattery said.
“I seriously doubt we would make any change this year,” Mr. Slattery said, referring to adding new managers.
The pension fund plans to keep GMO, which has $229 million in a defensive, value-oriented strategy; JPMAM, $228 million in an aggressive, equity-oriented approach; and Schroders, $220 million in a middle approach between the two other managers, Mr. Slattery said.
“We feel we have a good trio that fit each category” of the existing strategies, Mr. Slattery said.
The board plans to look at different GTAA approaches, he said.
“Maybe in the future we might want to (add) something like these” other strategies the pension fund might identify, Mr. Slattery said.
The mulitasset allocation makes up about one-third of the pension fund’s total assets, Mr. Slattery said. A potential amount to expand the allocation hasn’t been determined.