Fairfield pension funds choose Invesco for alternative beta strategy

The Town of Fairfield (Conn.) Joint Retirement Investment Board hired Invesco (IVZ) Advisers to manage a $16 million multiasset-class alternative beta strategy.

Members of the investment board, which jointly oversees the Town of Fairfield Employees' Retirement System and the Town of Fairfield Police and Firemen's Retirement System, made the selection at a meeting on Wednesday, said Robert Mayer, the town's chief fiscal officer, in an email. The pooled assets of the two funds total $350 million.

The other finalists were Newton Investment Management and Standard Life Investments. Callan Associates assisted with the search.

The investment board sought a replacement for hedge funds-of-funds manager Diversified Global Asset Management after it closed last year. For reasons of lower cost, better transparency and returns uncorrelated to major markets, the investment committee decided to replace direct hedge fund exposure with an alternative risk-premium approach, Mr. Mayer said.

Invesco’s alternative beta strategy form the core of the pension funds' hedge fund portfolio, with existing direct investments in Conatus Capital Management and Wellington Management Co. hedge funds providing alpha-generation in the satellite ring.