Kentucky Retirement Systems, Frankford, hired Saba Capital Management, a relative value and arbitrage strategies manager, to run $75 million in a closed-end separate account.
The retirement systems' board approved the hiring at its Jan. 30 meeting, a webcast of the meeting showed.
According to a presentation included with meeting materials, the investment will be allocated to the systems' real-return asset class and will "provide exposure to listed equity and fixed-income securities at a discount, including meaningful exposure to real assets through the energy, utilities, materials and infrastructure sectors."
The Kentucky Retirement Systems' board oversees the investment management of the $3.9 billion Employees' Retirement System (Non-Hazardous), $959 million Employees' Retirement System (Hazardous) and $621 million State Police Retirement System.
As of Nov. 30, those systems' actual allocations to real return were 7%, 7.1% and 7.1%, respectively. Each has a target of 10%.
