Knoxville (Tenn.) City Employees' Pension Fund hired RhumbLine Advisers to run about $31 million in its global low-volatility equity index fund.
The $605 million pension fund made the hire following the board's decision to add a low-volatility component to its global equity portfolio, said Kristi Paczkowski, executive director.
Ms. Paczkowski said the pension fund will determine at a later date whether to open a search for active or additional managers, but for now the plan is to stay with RhumbLine's passive portfolio.
Funding comes from the termination of a $17 million active international growth equity portfolio managed by Gryphon International due to personnel changes and the reduction by $14 million of a risk-parity portfolio managed by PanAgora Asset Management, leaving it with about $26 million, Ms. Paczkowski said.
The pension fund's target allocation to global equities is 22%.
Investment consultant Marquette Associates assisted.