San Antonio Fire & Police Pension Fund hired Garcia Hamilton & Associates to run about $160 million in active domestic core fixed income, recently released board meeting minutes show.
The $3.2 billion pension fund's board approved the hiring at its May 29 meeting. The board in March had approved the creation of a new 5% target to core fixed income.
PGIM Fixed Income was the other finalist in the shortlist search.
The new core fixed-income target was funded by the elimination of the pension fund's 5% target to risk parity, which resulted in the termination of AQR Capital Management. Underperformance was cited at the time; an AQR spokesman had declined to comment.
Investment consultant NEPC assisted.
Separately, the board at its meeting approved commitments of $20 million each to HarbourVest Partners Co-Investment Fund V, a private equity co-investment fund, and Ocean Avenue Fund IV, a private equity fund of funds managed by Ocean Avenue Capital Partners.
Officials at the pension fund could not be immediately reached to provide further information.