El Paso (Texas) City Employees' Pension Fund hired Allianz Global Investors as its first absolute-return manager, said Robert Ash, executive director of the $723 million pension fund, in an e-mail.
Allianz will manage 5% of the pension fund's total portfolio, or about $36 million in current assets.
Eventually, absolute return could comprise 10% of the total portfolio.
Mr. Ash did not have details on funding sources at this time.
Any additional searches will be handled by the pension fund's investment consultant, Callan Associates, Mr. Ash wrote.