Ann Arbor (Mich.) Employees’ Retirement System approved additional allocations to U.S. Treasury inflation-protected securities managed for the city’s $466 million defined benefit plan and $132 million VEBA trust.
Existing manager Income Research & Management was awarded an additional $9 million for the $10 million TIPS portfolio it manages for the defined benefit plan. About $2 million was added to the $3 million TIPS portfolio in the VEBA, said Nancy R. Walker, executive director of the city’s public employee plan, in an e-mail.
Funding for the TIPS investment comes primarily from the termination earlier this year of Vontobel Asset Management for management of a $9.2 million active emerging markets equity portfolio, according to recently released minutes of the fund’s April 5 investment policy committee meeting.
Investment consultant Meketa Investment Group assisted.