Alaska Retirement Management Board, Juneau, hired Allianz Global Investors to manage $200 million in a structured alpha strategy, subject to contract and fee negotiations, said Judith Hall, liaison officer, in an e-mail.
Funding will come from cash.
The Allianz Structured Alpha 1000 Plus portfolio seeks to deliver 10% to 14% annually, net of fees, on top of the return of the 90-day T-Bill, according to educational documents provided to the board.
“The expected return patterns of the Structured Alpha 1000 Plus should improve the diversification of the Alaska Retirement Board’s total plan, as well offering a high probability of contributing to strong risk-adjusted returns,” said a letter to the board from its investment consultant, Callan Associates.
The strategy will fall under the board’s absolute-return allocation.
As of July 31, the board’s defined benefit plans had a 4.27% allocation to absolute return. The board oversees more than $26 billion in retirement assets.