US - The $2.9bn General Retirement System of the City of Detroit has increased Mount Lucas Management's (MLM) diversified futures mandate by $5m, bring the total up to $20m.
The Detroit fund made an initial $10m commitment to MLM in 1997, a total that has grown to $15m from market performance, according to Ray Ix, senior vice president. The fund was advised by New England Pension Consulting.
David Clark, chairman of the Detroit fund, said: The MLM Index is one of the most versatile index-based alternative investments available. The board was willing to increase it's allocation by such a substantial amount because the MLM Index has demonstrated its ability to maintain consistently strong returns across rapidly changing investment environments.
Based in Princeton, New Jersey, Mount Lucas provides managed futures investment programs for institutions and high net worth investors. Founded in 1986, the firm’[s MLX index is used by consultants and financial planners as a benchmark for evaluating returns from managed futures.
By Geoffrey Ho
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