Kansas City (Mo.) Employees' Retirement System committed $31 million to the TCW TALF Opportunities Fund, said Barbara Davis, executive director, in an email.
The $1.1 billion pension fund's board approved the commitment at a special board meeting on May 6, Ms. Davis said.
Partial funding will come from the redemption in April of the retirement system's $19 million investment in AQR Delta XN Offshore fund, a diversifying hedge fund managed by AQR Capital Management. Assets are temporarily parked in the BlackRock Market Advantage Fund, which currently has about $36 million.
These portfolios are in the pension fund's opportunistic investment allocation, which is currently 10%, Ms. Davis said.
Remaining funding has yet to be determined.
TCW Group's fund is an asset-backed securities fund related to the Federal Reserve Bank's new Term Asset-Backed Securities Loan Facility.
Investment consultant RVK assisted.