Miami Beach (Fla.) Fire & Police Pension Fund increased targets to domestic small-cap and midcap equities at the expense of active domestic large-cap equities, said John McCann, senior consultant at AndCo Consulting, the $907 million pension fund's investment consultant.
The pension fund's board approved increasing targets to small-cap equities and midcap equities to 10% each from 8%. The target for domestic large-cap equities was cut to 20% from 24%.
No managers will be terminated, Mr. McCann said. The new targets, approved in late June, will be met through rebalancing, he said.
The fund's overall target allocation is: 50% domestic equities; 25% domestic fixed income; 10% real estate; and 5% each, cash equivalents, international equities and international fixed income.
As of March 31, the actual allocation was: 55% domestic equities; 26.7% domestic fixed income; 9.8% real estate; 3.8% international equities; 3.7% international fixed income; and 1% cash equivalent.