Four Massachusetts defined benefit plans launched searches for an investment strategy focused on the Term Asset-Backed Loan Facility programs.
The $190 million Weymouth Retirement System, $179 million Plymouth Retirement System and $165 million Concord Contributory Retirement System are each looking to allocate $5 million to $10 million to a TALF strategy, while the $186 million Watertown Contributory Retirement System is looking to allocate $2 million to $3 million.
The plans' investment consultant, Fiduciary Investment Advisors, is assisting with the searches.
The searches are being conducted after the Federal Reserve decided to reactivate the TALF program as part of its stimulus efforts, said Richard Carey, research analyst for FIA.
Respondents must be dedicated participants in the TALF program. Non-TALF strategies will not be considered.
Edward J. Masterson, Weymouth's retirement system director, said in an email that it's conducting the search because the retirement board and FIA decided that TALF "can possibly be a good opportunity for double-digit returns in a difficult market environment." Mr. Masterson added that a funding source has yet to be determined.
Watertown's TALF RFP is being issued based on FIA's recommendation, said Barbara A. Sheehan, pension fund director. Funding will likely come from the portfolio's fixed-income sleeve.
Wendy Cherry, executive director of the Plymouth Retirement System, said no decisions as to whether an investment will be made or from where the funding would be sourced have been made.
Anthony Tranghese, managing partner at FIA, also said no decisions on whether an investment will be made or from where funding would be sourced for Concord’s search.
The RFPs are available on Fiduciary Investment Advisors' website. Proposals for all four searches are due at noon EDT May 26.
Ms. Sheehan said she anticipates the Watertown Retirement board to decide on a manager at the end of the month, depending on responses to the RFP. Selection dates for the other plans were not disclosed.
Linda Boucher, Concord Retirement's administrator, referred questions to FIA.