Kansas City (Mo.) Police Employees’ Retirement System invested $45 million in Fidelity Investments’ Strategic Real Return mutual fund, said James Pyle, pension systems manager.
The hire is the result of an asset-liability study that in March created a new 5% target to diversified inflation hedge strategies. The pension fund previously had a 4% target to commodities. The new target was partially funded by the commodities target and targets to domestic and international equity.
The Fidelity fund has exposure in commodities, REITs, Treasury inflation-protected securities and floating-rate debt. Funding comes from the termination of commodities manager Gresham Investment Management, which ran about $34 million, and other rebalancing.
The retirement system’s two pension funds — the Police Retirement System of Kansas City and Civilian Employees' Retirement System of the Police Department of Kansas City — have combined assets of $907 million.
Investment consultant RVK assisted.
