Nashville (Tenn.) & Davidson County Metropolitan Government Employee Benefit Trust Fund hired Oaktree Capital Management to run $40 million in active emerging markets equities, confirmed Fadi BouSamra, chief investment officer.
The $2.4 billion pension plan will fund the hire from an ACWI ex-U.S. index fund; the new allocation will sit in the pension fund's international equities portfolio.
The pension fund also hired Marinus Capital Advisors to run $25 million in asset-backed securities for its alternative fixed-income allocation, and ABS Investment Management to run $15 million in an emerging markets long/short equity fund of funds.
Separately, the pension fund committed $30 million to LGT Crown Europe Small Buyout Fund, a private equity fund managed by LGT Capital Partners, a first-time commitment.
No managers were terminated, Mr. BouSamra wrote in an e-mail.
The pension fund's current actual asset allocation is 31% domestic equities, 18% traditional fixed income, 15% international equities, 11% real assets, 10% long/short equity, 9% alternative fixed income and 6% private equity.
The current target allocation is 15% each, traditional fixed income and alternative fixed income; 14.5% domestic equities; 13% international equities; 12.5% real assets; and 10% each, long/short equity, private equity and global equities.
Investment consultant Summit Strategies Group assisted.