Ohio Bureau of Workers' Compensation, Columbus, hired Legal & General Investment Management Americas, Pacific Investment Management Co. and Prudential Fixed Income to run $475 million to $500 million each in active, domestic, long-credit fixed income for the $22 billion State Insurance Fund, confirmed spokeswoman Kelly Loftus.
Funding comes from terminating State Street Global Advisors from a $1.5 billion passive, domestic, long-credit fixed-income portfolio. The change is due to the fund's moving to a fully active approach for its long-credit fixed-income portfolio, which accounts for 28% of total assets.
The bureau also hired Mellon Capital Management to run about $2.6 billion in passive, domestic, large-cap equities. An RFP was issued in July.
The RFP was a result of the State Insurance Fund establishing new breakouts within its domestic equity allocation of 12% passive large cap, 7% active midcap and small cap; and 1% minority-owned managers of managers and/or women-owned active managers.
Funding for the large-cap hire comes from Russell 3000 index strategies managed by Mellon Capital and Northern Trust. Ms. Loftus could not provide information on specifics regarding how those portfolios would be reduced.