Kansas Public Employees Retirement System, Topeka, is searching for a global inflation-linked bond manager to run about $100 million as part of its real-return allocation, confirmed spokeswoman Kristen Basso.
It will be the $13.4 billion pension fund's first investment with a global inflation-linked bond manager, Ms. Basso wrote in an e-mail. The real-return portfolio — which consists of TIPS, master limited partnerships, infrastructure and timberland — has a current allocation of 8.2%. Funding will come from TIPS, which totaled $946 million as of March 31.
Investment staff is handling the search.
KPERS intends the portfolio to be managed actively against the Barclays Capital Universal Government Inflation-Linked Bond index, Barclays Capital World Government ILB or another global inflation-linked index to be determined, according to the RFP. The retirement system is looking for a separate account structure, but would consider commingled funds.
The RFP is available on the pension fund's website. Proposals are due at noon CDT July 12. Staff will recommend a manager at the Sept. 20 or Oct. 18 board meetings.