The $4 billion Chicago Policemen's Annuity & Benefit Fund will issue a search for a multistrategy hedge funds-of-funds manager.
The RFP will be posted on the pension fund's website on Nov. 3 with responses due on Dec. 3, said Samuel Kunz, chief investment officer, in an e-mail.
Mr. Kunz said the hedge fund-of-funds allocation will be 9% of plan assets, or $360 million in current dollars. The funding source could not be learned.
Separately, trustees recommended “close monitoring of Pacific Investment Management Co., specifically of asset flows and performance,” following the late September departure of William H. Gross, co-founder and chief investment officer, Mr. Kunz said.
PIMCO was placed on watch by the board in February after Mohamed El-Erian, the previous co-CIO, announced that he would leave the company in March.
The pension fund has $134 million invested with PIMCO, Mr. Kunz said.
Separately, Mr. Kunz said the pension fund returned a net 4.96% year-to-date through Sept. 30.