Chicago Metropolitan Water Reclamation District Retirement Fund hired MFS Investment Management and Northern Trust Asset Management to run about $40 million each in global low-volatility equity portfolios, said Brian A. Gillespie, financial analyst, in an email.
The $1.5 billion pension fund issued an RFP in February to provide further diversification for the pension fund's equity portfolio, said James E. Mohler, executive director, at the time.
Mr. Gillespie said the specific funding source for the portfolio has yet to be determined but will likely be drawn from the pension fund's equity exposure.
As of Dec. 31, the actual allocations to domestic equities and international equities were 41.9% and 22.7%, respectively; their respective targets are 41% and 22%.
Investment consultant Marquette Associates assisted.
