Massachusetts Water Resource Authority Employees' Retirement System, Chelsea, hired RhumbLine Advisers to manage up to $16 million in a passive Treasury inflation-protected securities index fund.
The $442 million pension fund also hired People's United Bank as custodian.
The TIPS allocation is new for the system's portfolio, said Carolyn Russo, executive director, in an email. Funding came from rebalancing. An RFP was issued in April.
State Street was the incumbent custodial bank, and they did submit a bid, Ms. Russo said. Representatives from State Street could not be reached for comment by press time. The RFP was issued in June.
NEPC, investment consultant for the pension fund, assisted with the searches.
In addition to these hires, the board is expected to narrow the responses to its small-cap international manager RFP at its meeting later this month.