Fort Lauderdale (Fla.) Police & Fire Retirement System is looking to invest between $75 million and $100 million in a local private-public infrastructure or real estate project, said Fred Nesbitt, pension fund spokesman.
The $871 million pension fund is looking to gain a 5% to 7% return on a partnership as a fixed-income alternative.
Funding would come from the pension fund's fixed-income allocation; no managers would be terminated. Agincourt Capital Management and Boyd Watterson Asset Management run about $107 million and $105 million, respectively, in fixed income.
Mr. Nesbitt also added some funding is likely to come from rebalancing. As of June 30, for example, the pension fund's allocation to domestic equity was 35.6%, overweight to its 30% target.
In fixed-income committee minutes provided by Mr. Nesbitt, board Chairman Michael Dew said "the purpose for the investment is to make money and for it to have a social impact on benefits in the long term."
Among possible projects is the city's need for sewer system upgrades.
A timeline for selecting the project has yet to be determined. Investment consultant CapTrust Advisors is assisting.