St. Louis Firefighters' Retirement Plan approved a number of changes to its target allocation, according to an investment policy statement March 30.
Specifically, at a board meeting Feb. 23, the pension plan introduced new asset classes timber/farmlands and international small-cap equity, each with an initial target allocation of 5%.
In addition, the target allocation for domestic large-cap equity was reduced to 25% from 30%; international equity was cut to 10% from 20%; and real estate was increased to 10% from 5%.
Targets for domestic midcap equity (15%); domestic small-cap equity (5%); emerging markets equity (5%) and fixed income (20%) were unchanged.
The pension plan currently has about $139 million in assets, according to Janice Fairless, manager of the pension plan.
Investment consultant Dahab Associates is already assisting with a search for an international small-cap equity. The amount to be managed in this RFP is $5 million to $10 million, and both active and passive strategies will be considered for this search.
The RFP is available on Dahab's website. Proposals are due by 5 p.m. EDT on May 5.
Dahab will also conduct searches for a second real estate manager and for a timber manager. In July 2016, the pension plan committed $3 million to Principal U.S. Property Account, an open-end core real estate fund managed by Principal Real Estate Investors.
Barry Bryant, managing director at Dahab, said they expect to conduct the other two searches "within the current calendar year."
