Chicago Firemen’s Annuity & Benefit Fund is searching for an active core-plus fixed-income manager to run about $70 million and an active core fixed-income manager to run about $50 million.
The $1.3 billion pension fund is seeking proposals from active managers of core-plus fixed-income strategies with no more than 35% of their portfolios invested in non-investment-grade bonds and core fixed-income strategies with no more than 10% of their portfolios in non-investment-grade bonds, according to two RFPs posted on its website.
The reason for the search and the funding sources for the new managers were not provided. Lorna Scott, chief investment officer, could not be immediately reached for further information.
As of June 30, the pension fund’s actual allocation to fixed income was 25.3%; the target is 22%.
The core fixed-income RFP and core-plus fixed-income RFP are both available on the pension fund’s website. Proposals for both searches are due by 3 p.m. CDT on Nov. 1. Selections are expected sometime in January or February.
Investment consultant Callan is assisting.
