R.V. Kuhns & Associates has hit the ground running after it landed a new public pension fund contract in the Midwest, according to Investment Management Mandate Pipeline.
The Portland, Ore-based firm was offering the Kansas City Police Employees’ Retirement System Investment Committee an introduction into its asset allocation modeling and asset/liability study process, Michael Giardina of Mandate Pipeline writes.
The KCPERS Investment Committee was hearing from Ron Klotter, a senior consultant and director of Midwest consulting, and consultant Kristen Steffens.
According to the agenda, the firm was to offer results for risk tolerance and risk preferences, as well as an introduction into its asset allocation and asset/liability modeling process, according to Mandate Pipeline. R.V. Kuhns was awarded the investment consultant contract at the KCPERS Board of Trustees meeting on Aug. 13.
Previously, DeMarche Associates served as KCPERS investment consultant. In May, KCPERS issued an investment consulting RFP, with bidding slated to end in June. R.V. Kuhns and Marquette Associates were listed as the investment consultant finalists; R.V. Kuhns was awarded the contract and took over on Sept. 1.
Recently, under the advisement of DeMarche consultant Bill Miksell, the KCPERS board approved a new model portfolio, Giardina writes.
The new targets included 45% to total equities, which contains 20% to large-cap, 10% each to small-cap and emerging markets and 5% to international. For the 20% to the fixed-income basket, 9% is promised to international, 6% to high yield and 5% to TIPS. And the remaining 35% to alternatives includes a 15% commitment to real estate, 10% to hedge fund of funds, 5% to commodities, 3% to private equity and 2% to cash.
As of April 30, 2012, KCPERS had about 31% targeted to fixed-income and cash, 46% to equities and 23% to alternatives, accoring to its 2012 Comprehensive Annual Financial Report, Mandate Pipeline reports.
While KCPERS Pension Systems Manager Jim Pyle said in an email that no decisions were made at the Thursday Committee meeting, updates to possible direction were offered at its Sept. 3 and Sept. 10 meetings, Mandate Pipeline reports.
Early last month, an educational session was held on active vs. passive management, and a discussion on active risk was also listed, the Sept. 3 minutes of the meeting said.
One week later, R.V. Kuhn’s Klotter said that a preliminary review by the investment consultant highlighted that an immediate replacement was not required for current funds and managers. However, he noted that as the next steps of the asset allocation modeling process and asset/liability study progress, there will likely be talks “about the current portfolio structure and how its managers fit with the asset allocation,” the Sept. 10 meeting recap listed, according to Mandate Pipeline.
