Chicago Metropolitan Water Reclamation District Retirement Fund plans to issue an RFP for its first emerging core fixed-income manager to run between $50 million and $100 million, said Susan Boutin, executive director, in an e-mail.
The RFP is expected to be posted on the $1.2 billion pension fund's website on March 7.
Funding sources have not been determined. The pension fund has several emerging managers in its equity portfolio.
Investment consultant Marquette Associates is assisting.
Separately, the pension fund terminated WCM Investment Management's roughly $45 million domestic small-cap value equity strategy. The firm was terminated for “manager consolidation” purposes, Ms. Boutin wrote.
Funds will be split evenly between domestic small-cap value equity manager Wasatch Advisors and emerging domestic small-cap core equity manager Matarin Capital Management, which managed $48.8 million and $24 million, respectively, as of Sept. 30.
The pension fund also had $26.4 million invested with emerging domestic small-cap value equity manager Fiduciary Management Associates as of Sept. 30. Mesirow Financial acquired Fiduciary Management Associates in a deal expected to close March 31.
The pension fund has a 42% equity target and 35% fixed-income target.