Massachusetts Pension Reserves Investment Management Board, Boston, voted on Thursday to search for at least one manager to run a total of $720 million in active global inflation-linked bonds and commodities, said Eileen O'Connor, spokeswoman for state Treasurer Timothy Cahill. The $35.2 billion pension fund, which currently allocates 5% of assets to its TIPS portfolio, would fund the new allocation by reducing the portfolio by 2 percentage points, Ms. O'Connor said. General consultant Cliffwater recommended the move to allow MassPRIM to further diversify and move into commodities. The RFP is available at www.mapension.com. Proposals are due by 3 p.m. EDT July 1. Interviews are currently scheduled for July 19, and selections are set for Sept. 1.
The fund is also searching for a real estate investment consultant because existing contracts with The Townsend Group and Morse and Morris are set to expire in July, Ms. O'Connor said. The RFP isTownsend Group and Morse and Morris are set to expire in July, Ms. O'Connor said. The RFP is available at www.mapension.com. Proposals are due at 3 p.m. EDT June 27. Finalist interviews are tentatively scheduled for July 7.
MassPRIM currently invests 7.6% of its assets in real estate, with a long-term target allocation of 9%.
Separately, the board approved completing the funding of a 9% long-term high-yield allocation and temporarily investing $570 million in funds earmarked for distressed debt. The board has not been able to find distressed debt managers and will invest the $570 million with existing high-yield and emerging markets managers until distressed debt managers are identified, she said. Existing high-yield manager Loomis Sayles, which currently runs $443 million, will receive $183 million. Seix Investment Advisors and Shenkman Capital Management, each of which runs $500 million in high yield, will receive $122 million each. Existing emerging markets managers Ashmore Investment Management and PIMCO will get about $71 million each; Ashmore currently manages $242 million and PIMCO, $230 million. The long-term target allocation to distressed debt will remain at 2%. Cliffwater assisted.