Chicago Firemen's Annuity & Benefit Fund is searching for a manager to run a $34 million liquid diversifying/liquid alternative strategy, an RFP posted on the pension fund's website shows.
The $850 million pension fund issued an RFP for a manager to run a strategy with a low or negative correlation to public equity, low-to-moderate volatility, monthly liquidity and low net leverage. Types of strategies excluded from the search are global asset allocation strategies, hedge funds of funds, long-biased strategies and risk-parity strategies, according to the RFP. The portfolio represents a 4% target allocation of the total fund, the RFP said.
As of Sept. 30, the pension fund's actual allocation to alternatives was 9.1%.
The RFP is available on the pension fund's website. Proposals are due at 3 p.m. CDT on June 3. A decision is expected in July or August.
Investment consultant Callan is assisting.
Lorna Scott, chief investment officer, could not be immediately reached to provide further information.