Asset Allocation, Consultants, Defined Benefit, Pension Funds, Public Funds

St Louis Sewer Sets Aon to Task on Asset/Liability Study

The Metropolitan St. Louis Sewer District (MSD), which late last year engaged Aon as its new general consultant, has set the firm to work on its first project: an asset/liability study that it expects the firm will complete by the end of March.

According to Tim Snoke, MSD secretary-treasurer, prior to hiring Aon, MSD had worked for five years with consultant Pavilion Financial Corporation. (The firm was purchased by Mercer last December.) “When the contract ended last year, we put it out to bid and went through a comprehensive review process. We had ten or eleven respondents and we ultimately went with Aon,” according to Snoke. Shane Schurter, a senior investment consultant in Aon’s Chicago office, will work with MSD.

MSD sponsors an approximately $261 million defined benefit plan and deferred compensation and defined contribution plans totaling approximately $70 million.

As of Dec. 31, 2018, the DB plan’s asset allocation breakdown stood at approximately 30% domestic equity, 17.3% international equity, 35.7% fixed income, 3.3% fund of hedge funds, 12.8% real estate, and 0.8% cash. Snoke noted that the fund is now in the process of eliminating its fund-of-hedge-funds exposure.

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