Fixed-Income
The water authority retirement plan replaced its domestic core-plus fixed-income manager in May due to underperformance.
The fund approved terminating a core fixed-income manager and reallocating the assets with its two other existing fixed-income managers at its board meeting last week.
The plan’s investment consultant is recommending swapping for higher conviction managers.
The plan is seeking managers to handle a total of $5.9 billion.
The retirement fund will shift the $200 million mandate to a passive account at least initially.
The plan also made two private markets commitments today.
The plan has four incumbent managers in the two asset classes.
The plan is seeking separate account managers that can offer exposure to multiple credit asset classes.
The termination recommendation stems from fixed-income structural changes approved last summer that eliminated sub-asset class targets in core-plus and high-yield.
The college savings plan placed four strategies on watch for performance issues, while removing one from watch status at its July board meeting.
