Trustees of City of Austin (Texas) Employees' Retirement System approved the reduction of the assumed rate of return for the $2.8 billion fund's assumed rate of return to 7% from 7.5% at a Dec. 10 board meeting.
David T. Veal, the fund's chief investment officer, said in an email that the new return rate will be used in calculating the fund's 2019 valuation.
Trustees also approved a pre-approved list of multiasset managers to share management of about $130 million. Mr. Veal declined to name the selected managers until contracts have been signed.
He said several managers will be awarded $10 million to $30 million each through "targeted investments in commingled funds that employ attractive asset allocation strategies that can help inform our investment strategy overall."
The new managers will "complement" the $130 million multiasset strategic partnership that the pension fund hired BlackRock to manage in January 2018, Mr. Veal said.
New manager hires for the multiasset assignments are scheduled to be completed in first quarter 2020.
Mr. Veal said funding for the new hires comes from the termination of the fund's $130 million allocation to a risk-parity strategy managed by AQR Capital Management, because it no longer fit into the fund's asset allocation.