The Maryland State Retirement and Pension System, Baltimore, hired PIMCO to manage $640 million in a real-return bond portfolio, consisting primarily of Treasury inflation-indexed bonds, said Steve Huber, CIO of the $31.8 billion fund. He said funding will come by reducing portfolios of its existing fixed-income managers: PIMCO, State Street Global Advisors, Bridgewater Associates, Western Asset Management and Payden & Rygel. The system has 30% of assets allocated to fixed income, which includes the new 2% inflation-indexed allocation. The addition was the result of an asset allocation study last year. Ennis Knupp assisted.