Philadelphia Board of Pensions & Retirement hired MFS Investment Management and Fidelity Investments to manage $75 million each in global low-volatility equities strategies and selected Northern Trust as its global custodian, confirmed Christopher DiFusco, chief investment officer of the $7.2 billion pension fund, in an email.
The board selected the managers and custodian on May 27.
The low-volatility search was launched in January 2020 as part of the board’s long-term asset allocation plan. It is a new allocation for the pension fund. PanAgora Asset Management was the other finalist for the low-volatility search.
The search for a custodian was launched in October to comply with city ordinance requiring contracts to go out to rebid every four years. Northern Trust replaces the board’s current custodian, J.P. Morgan Chase, which did not rebid, according to meeting minutes.
