Dallas ERF Reduces Ariel Allocation to $40M, Drops Wamco

The Employees’ Retirement Fund (ERF) of the City of Dallas has decreased its allocation to global equity manager Ariel Investments and terminated Western Asset Management from its fixed income roster.

Per recently published materials from its December 10, 2024, board meeting, the pension moved to reduce its Ariel Global Fund allocation from $94M to $40M within the global equity composite. Staff and general consultant Wilshire recommended the cut during the pension’s September 9, 2024, board session due to fund underperformance and “significant organizational change” within Ariel.

Additionally, Dallas ERF also approved a motion to terminate Western Asset as fixed income manager within its portfolio due to the firm’s structural overhaul, following SEC investigation on past trade activity related to former WAM trader and co-CIO Ken Leech. With the termination, the pension reallocated $200M in assets from the WAM account to the Northern Trust Aggregate Bond Index within its fixed income mix.

As of September 30, 2024, Dallas ERF managed approximately $3.8B in total assets, with global equity accounting for 5.2% of the portfolio against a 5% target, and fixed income accounting for 15.8% against a 17.5% target.

Written By: Dakota

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Dallas ERF Reduces Ariel Allocation to $40M, Drops Wamco

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