Oklahoma Police commits $15 million to middle-market growth equity

Oklahoma Police Pension & Retirement System, Oklahoma City, committed up to $15 million to TA XIII, a middle-market growth equity fund managed by TA Associates, Executive Director Ginger Sigler said.

The $2.6 billion pension fund previously committed $20 million to TA Associates Realty X in 2012.

Separately, the board at its meeting Wednesday approved increasing its targets to core real estate to 10% from 5% and private equity to 15% from 10%. Funding comes from the reduction of the long/short equity target to 10% from 15% and eliminating the 5% commodities target.

The pension fund's sole long/short equity manager is Grosvenor Capital Management, which as of April 30 had $376 million, or 14.5% of assets, in its portfolio. The pension fund's two commodities managers are Gresham Investment Management and Mount Lucas Management, which as of April 30 ran a combined $78 million, or 3% of the pension fund. Ms. Sigler said in a telephone interview that official decisions regarding terminations and portfolio reductions have yet to be finalized.

The pension fund's other targets, which remain unchanged, are: 15% domestic large-cap equities; 10% each, core fixed income and international developed markets equities; 7.5% each, absolute return and multi-sector fixed income; and 5% each in domestic small- and midcap equities, emerging markets equities and opportunistic real estate.

As of April 30, the actual allocation was: 17.9% domestic large-cap equities; 14.5% long/short equities; 10.2% international developed markets equities; 9.8% multisector fixed income; 8.2% core fixed income; 8.1% private equity; 7.2% domestic small- and midcap equities; 7% absolute return; 6.6% core real estate; 4.5% emerging markets equities; 3% commodities; 2.2% opportunistic real estate; and the rest in cash and equivalents.

Investment consultant Asset Consulting Group assisted with both the commitment and the asset allocation changes.