Core-Plus
The plan deferred its core-plus fixed-income search to its January board meeting.
The retirement system hired two active domestic fixed-income managers and approved a structure for its new private debt portfolio today.
The retirement system will consider hiring two active domestic fixed-income managers and approving a structure for its new private debt portfolio this week.
The hire concludes the pension plan’s search for a core-plus fixed-income manager to handle between $130 million and $150 million.
The searches follow establishment of new sub-asset class targets of 11% to broad fixed-income and 3% to high-yield within its overall fixed-income target earlier this year.
The plan ended a 30-year relationship with a core-plus bond manager after changes from recent meetings reported out of closed session.
The pension plan hired the firm based on its favorable returns, low fees, diversification and low correlation to existing active core-plus fixed-income manager Loomis, Sayles & Company.
Pension has narrowed a search for a complementary manager to three finalists.
The plan is seeking a firm to fill its maiden 8.5% target to core-plus fixed-income.
The managers will complement existing core-plus manager TCW.