Massachusetts Water Resource Authority Retirement System, Chelsea, invested about $12 million in LMCG Serenitas Credit Gamma Fund.
The $639 million pension fund's board approved the investment in the opportunistic credit hedge fund managed by LMCG Investments at its June 29 meeting, said Carolyn Russo, executive director, in an email.
Ms. Russo said the exact amount of the investment will be determined once funded.
The pension fund issued an RFP in March for opportunistic credit managers to complement its existing fixed-income strategies.
The other finalists were Waterfall Asset Management and Wellington Management.
As of May 31, the pension fund's actual allocation to fixed income was 19.1%; the target is 20%.
Investment consultant NEPC assisted.