Massachusetts Water Resource Authority Employees’ Retirement System, Chelsea, hired RhumbLine Advisers to manage $30 million in passive domestic core fixed income.
The $730 million pension fund’s board approved the hiring at its Aug. 29 meeting, recently released meeting minutes showed.
The pension fund issued an RFP in July to add passive exposure to its core fixed-income portfolio in order to lower fees, said Carolyn Russo, executive director, at the time.
According to the meeting minutes, funding will come from the termination of Lord Abbett & Co.’s $50 million active core fixed-income portfolio. The remaining assets from that portfolio will be split evenly between Loomis Sayles’ multisector fixed-income portfolio and Serenitas Credit Gamma Fund, a credit hedge fund managed by LMCG Investments, increasing those portfolios to $72 million and $28 million, respectively.
As of Aug. 31, the pension fund’s actual allocation to fixed income was 17.8%; the target is 18%.
Investment consultant NEPC assisted.
