High-Yield
The retirement system will shift planned searches for bank loan and high-yield managers into a single search for multi-asset credit managers.
The pension plan will be looking to fill a new 4% target to the sub-asset class.
The plan’s existing high-yield fixed-income managers had been on watch for performance reasons.
The firm also hired two high-yield fixed-income managers to handle $450 million each.
The retirement system will also launch a search for private credit managers next year.
The hire concludes an RFP process that began in May.
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 search will be opened to high-yield corporate debt, leveraged loans, securitized credit and convertible bond strategies.
The search follows a new asset allocation that includes maiden targets to corporate credit and bank loans.
