Knoxville (Tenn.) City Employees’ Pension Fund hired PanAgora Asset Management to run a $27 million risk-parity portfolio, said Kristi Paczkowski, executive director.
The $540 million pension fund conducted an invitation-only search for its first risk-parity manager earlier this year, said Ms. Paczkowski in a telephone interview.
Funding will come from “profits from our domestic equity managers,” Ms. Paczkowski said.
Other finalists were AQR Capital Management and BlackRock.
Investment consultant Summit Strategies Group assisted.
