Worcester (Mass.) Retirement System invested $37 million in Northern Trusts Daily Collective Aggregate Bond Index Fund, said James DelSignore, chairman and city auditor. The fund is benchmarked to the Lehman Brothers Government/Corporate Bond index.
Partial funding came from cutting $20 million from an active domestic fixed-income portfolio run by Allmerica Financial, leaving it with $62 million. The $488 million pension plan also trimmed $10 million from an active domestic high-yield and investment-grade fixed-income portfolio run by Loomis Sayles; the portfolio, now at $28 million, is entirely high-yield, he said. The balance of funding came from the city of Worcesters annual contribution, he said.
Mr. DelSignore said the changes were made to reduce fees.
Meketa Investment Group advised.