Knoxville (Tenn.) City Employees' Pension System hired Northern Trust Asset Management to run about $27 million in active global low-volatility equities.
The $640 million pension fund's board approved the hiring at its meeting Thursday, said Kristi Paczkowski, executive director.
Funding comes from a passive global low-volatility equity portfolio managed by RhumbLine Advisers. The pension fund board in 2019 had voted to add a low-volatility component to its global equity portfolio and that October approved an investment in RhumbLine's global low-volatility index fund until an active manager could be hired.
The pension fund then conducted a shortlist search for a manager to run an active portfolio. There were no finalist presentations.
The pension fund's target allocation to global equities is 22%.
Investment consultant Marquette Associates assisted.