Massachusetts Water Resources Authority Employees' Retirement System, Chelsea, is searching for a hedge fund-of-funds manager to run about $20 million for the $535 million defined benefit plan.
Part of the funding will come from rebalancing and from the $5.7 million to be redeemed from EnTrustPermal's diversified fund of funds, which was terminated for performance, fee and liquidity issues, said Carolyn Russo, executive director.
Jill Daschle, global head of business development at EnTrustPermal, did not respond to a request for comment.
The board at its March 29 meeting approved a rebalancing move to increase the pension fund's absolute-return allocation in the state's Pension Reserves Investment Trust by $3 million to bring that allocation up to about $16.6 million while the search is ongoing, Ms. Russo said.
NEPC, the pension fund's investment consultant, is assisting with the search.
Proposed strategies must have at least $500 million in assets and have a track record of at least five years to be considered. They must also be diversified by exposure and geography. The RFP is set to be available on the NEPC website soon. Proposals are due by 4 p.m. EDT on April 27. A selection date was not disclosed.