Chicago Metropolitan Water Reclamation District Retirement Fund hired Garcia Hamilton & Associates to manage $50 million in core fixed income, said Susan Boutin, executive director.
An RFP was issued in March for the $1.2 billion pension fund’s first emerging core fixed-income manager.
Funding will come from reducing assets managed by passive fixed-income manager State Street Global Advisors and overweight core-plus fixed-income managers Neuberger Berman and Pioneer Investments. The pension fund has a 35% fixed-income target and had $115 million, $117.8 million and $117.6 million invested with SSgA, Neuberger Berman and Pioneer, respectively, as of March 31.
The pension fund has several emerging managers in its equity portfolio.
Investment consultant Marquette Associates assisted.