Hartford (Conn.) Municipal Employees' Retirement Fund hired Prudential Financial and Bridgewater Associates to run $25 million each in emerging market debt, Brown Brothers Harriman to run $25 million in TIPS, and PIMCO to run $25 million in a diversified high-yield bond strategy, according to Kathleen Palm Devine, city treasurer and administrator of the $1.3 billion plan. Funding came from liquidating portions of some equity portfolios that had passed the statutory limit of 10% of plan assets. "A few managers have done so well that they've exceeded the targets and we keep having to reduce their portfolios," Ms. Devine said.
Separately, Mayor Eddie A. Perez asked the pension commission, the board that oversees the pension fund, to look at the plan's actuarial assumptions, its contracts with consultants and the possibility of using pension assets to invest in the redevelopment of Hartford. Ms. Devine pointed out that the plan hires consultants on a project-by-project basis.
"If the commission does want to take a look at any and all consultant contracts, I'm happy to share those with them," she said. "With respect to a potential investment of pension plan assets in housing and economic development, I am happy to consider any and all proposals but I would not recommend any proposal that does not have at least the best chance a prudent person could see would produce marketlike rates of return."