PennSERS signs fixed income, MLP managers
By Rob Kozlowski | March 6, 2013 3:50 pm
Pennsylvania State Employees' Retirement System, Harrisburg, hired MacKay Shields and UBS Global Asset Management to run a total of $300 million in active, domestic, core fixed income, confirmed spokeswoman Pamela Hile.
Separately, the system hired Harvest Fund Advisors and Kayne Anderson Capital Advisors to run $150 million each in energy infrastructure master limited partnerships. The hires are part of the system's real assets allocation and will be funded by reducing overweight real estate positions.
Investment consultant R.V. Kuhns & Associates assisted in both selections.
Also, the retirement system committed up to $50 million each to private equity funds H.I.G. Bayside Loan Opportunity Fund III and KPS Special Situation Fund IV, managed by H.I.G. Capital and KPS Capital Partners, respectively. They are the first alternatives commitments in 2013 for the system, which plans to commit a total of $500 million this year.
Alternatives consultant StepStone Group assisted.
The retirement system also announced a one-year return of 12% as of Dec. 31.