The City of El Paso Employees Retirement Trust on a series of unanimous votes approved hiring RVK Inc. for a $50,000 triennial review of investment practices, amended its Investment Policy Statement (IPS) to change domestic equity structure and private‑equity benchmarking, and authorized termination of an underperforming AllianceBernstein strategy with a linked rebalancing plan.

Trustees voted to select RVK to conduct the statutorily required investment practices review, a $50,000 engagement that staff said will start in January with a report expected in April. Robert Ashe, the trust’s executive director, told trustees the state statute in section 802.109 requires a third‑party review every three years and that two firms responded to the RFP (ACG and RVK); the investment committee recommended RVK.

The board then approved amendments to the IPS proposed by consultant Callan. The key changes delete references to a terminated “dynamic” equity strategy, revise the domestic equity asset structure from a 65/35 large‑cap versus small‑mid‑cap split to a 75/25 split, and replace the public‑market Russell 3000 private‑equity benchmark with a Cambridge private‑equity index effective for the fiscal year beginning Sept. 1, 2025. Callan’s presenters said the Cambridge benchmark provides a closer apples‑to‑apples comparison for private funds because it aggregates private partnerships and freezes returns for consistency.

Following the IPS changes, trustees addressed a separate but related recommendation from Callan and the investment committee to terminate the AllianceBernstein U.S. equity strategy after several years of negative excess returns that have driven composite underperformance and produced a compliance concern with the IPS. Callan told trustees the manager’s excess return remained materially negative over multiple time horizons and was impacting overall U.S. equity composite results.

Trustees approved a rebalancing plan to implement the strategy changes: fully liquidate the AllianceBernstein small‑mid cap allocation, transfer portions to an active small‑mid cap manager (Wellington) and to an S&P 500 index position, and raise approximately $9 million to cash to ensure near‑term liquidity for benefit payments and capital calls. Callan estimated the AllianceBernstein liquidation value at roughly $56,000,000 as of November (staff said the exact amount could change when the liquidation notice is submitted).

Each action was moved, seconded and carried by roll call votes. Trustees who were polled answered Aye on the RVK selection, the IPS amendment, the AllianceBernstein termination and the rebalancing plan.

What the actions mean: The IPS changes shift the plan’s tactical posture toward larger‑cap domestic equities and change how private‑equity performance is measured, while the manager termination and rebalancing seek to address multi‑year underperformance and bring the portfolio structure in line with the new IPS. The Board authorized the executive director or board chair to execute related contracts and transition assets.

The trust’s investment committee will oversee contract negotiations with RVK and the operational steps for liquidation and reallocation; Callan said staff (and custodial/legal counterparts) will manage the timeline for notices and transfers. The board did not set precise dates for the reallocation trades beyond the estimate that liquidation notices would be sent following the meeting.

Next steps: RVK’s review is scheduled to begin in January with a report targeted for April. Staff will return with contract documents and implementation steps for the liquidation and rebalancing and will keep trustees informed of timing and cash‑management details.