Massachusetts Pension Reserves Investment Management Board, Boston, today approved issuing RFPs for a hedge-fund-of-funds manager to run $1 billion in its first absolute-return portfolio, and at least one high-yield bond manager to run a total of up to $900 million. The absolute return RFP will be issued next week, and the high-yield RFP will be issued shortly thereafter. Funding will come from trimming the $29 billion pension fund's equity allocation; no managers will be terminated. System officials want to complement the "well-balanced" performance of PRIM's current high-yield bond managers - Fidelity, which runs $276.3 million; Loomis Sayles, $269.7 million; and W.R. Huff, $269.7 million - possibly by seeking a manager with a slightly more conservative strategy.
Separately, the board hired New England Pension Consultants to help implement its hedge fund strategies. The one-year contract has an option to be extended for two additional years.