Kentucky Retirement Systems, Frankfort, is searching for an absolute-return and real-return consultant, according to an RFI posted on the $14 billion pension fund's website.
More than one firm could potentially be hired.
It's the first time the retirement system will hire consultants for those asset classes; separate absolute-return and real-return portfolios were created last year.
KRS has a 10% target allocation to each asset class. It currently has $1.3 billion invested in three hedge funds of funds in the absolute-return portfolio, and $1.4 billion in real-return strategies, largely in TIPS.
The absolute-return portfolio mainly targets investments in hedge funds of funds, multistrategy and single-strategy hedge funds. The real-return portfolio focuses on TIPS, master limited partnerships, infrastructure, farmland, timber, real estate, REITs, commodities and agribusiness.
General consultant R.V. Kuhns currently advises the board on absolute-return strategies and consults on real return with real estate consultant ORG Portfolio Management and private equity consultant Altius Associates. It is unknown whether those consultants can bid on the RFI.
The entire RFI is available on KRS' website. Proposals are due at 4:30 p.m. EDT July 2. No hiring date was specified.
T.J. Carlson, chief investment officer, was not available for comment, and William Thielen, interim executive director, did not return a telephone call by press time for additional information.