Rhode Island State Investment Commission taps 2 for bank loan strategies

Rhode Island State Investment Commission, Providence, hired Pacific Investment Management Co. and Western Asset Management Co. to run a total of $350 million to $450 million in bank loan strategies, according to recently released minutes of the Jan. 23 board meeting.

PIMCO will manage $200 million to $250 million and WAMCO, $150 million to $200 million. According to the minutes, the two firms were seen as a good pairing for the portfolio as PIMCO is more conservative and WAMCO tends to go further out on the credit curve.

Pension Consulting Alliance assisted. An RFP was issued Oct. 31.

The state investment commission oversees the $7.6 billion Rhode Island Employees' Retirement System, Providence.

Separately, the investment commission approved redeeming its investment in Gracie Credit Opportunities Fund, managed by Gracie Asset Management, because of personnel changes. The investment commission committed $40 million to the strategy in November 2011; the current value of the strategy could not be determined.

— Contact Kevin Olsen at kolsen@pionline.com | @Olsen_PI