El Paso (Texas) City Employees' Pension Fund hired Janus Capital Management (JNS) to run $100 million in core-plus bonds and Franklin Templeton (BEN) Investments (BEN) to run $35 million in opportunistic bonds, confirmed Robert Ash, executive director of the $598 million pension fund.
Funding comes from terminating a $45 million MacKay Shields high-yield bond portfolio, $31 million Shenkman Capital Management convertible bonds portfolio and $30 million Mellon Capital Management TIPS index fund. The pension fund will also reduce a Mellon Capital aggregate bond index fund by $29 million. The terminations are part of a diversification restructuring, Mr. Ash said in a telephone interview.
Separately, the pension fund committed $40 million to Portfolio Advisors Private Equity Fund VII, a fund of funds.
It is the first commitment to the manager.
Callan Associates assisted.