Chicago Policemen's Annuity & Benefit Fund is searching for U.S. core and core-plus fixed-income managers as part of a regular review of the two portfolios.
The $2.4 billion pension plan's investment consultant, NEPC, has posted RFPs for the core fixed income search and the core-plus search on its website.
The RFPs also will be posted on the pension fund's website on or around April 22, according to NEPC's website.
The NEPC posts said the searches seek traditional, long-only fixed income managers with the allocation expected to be between $80 million and $150 million for each manager. The number of managers for each portfolio has not been determined.
The benchmark for both the core and core-plus bond portfolios is the Bloomberg Barclays U.S. Aggregate Bond index.
Managers are sought "as part of a review of our fixed income portfolio, the fund periodically will issue RFPs to explore the universe of managers and as a way to analyze the asset class in the current market environment," said Thomas Beyna, a Chicago police officer and president of the board and interim chief investment officer of the policemen's fund, in an email.
Chicago Policemen's fixed income portfolio currently totals $532 million, or about 22% of plan assets,
Wells Capital Management runs the $96 million U.S. core fixed-income portfolio. Wellington Management and LM Capital Group each manage half of the $186 million U.S. core-plus bond portfolio.
The balance of the fixed income portfolio is managed in other strategies.
Existing fixed-income managers are welcome to submit RFPs, Mr. Beyna said.
Proposals are due by 4 p.m. CDT on May 6. The time line for manager selection has not been set and will depend on the number of RFP responses, Mr. Beyna said.
