Searches and Hires

Indiana Public Retirement System slates $395 million for alternatives

Indiana Public Retirement System, Indianapolis, committed $270 million to the PanAgora Risk Parity Multi-Asset Fund, managed by PanAgora Asset Management. According to documents presented at the pension fund's Sept. 15 board meeting, the pension fund also made private equity commitments of $75 million to GSO Capital Solutions Fund III, an opportunistic credit fund managed by GSO Capital Partners; and $50 million to EnCap Energy Capital Fund XI, a North American oil and gas portfolio managed by EnCap Investments.

Separately, INPRS terminated fixed-income managers TCW Group, Income Research & Management and Wellington Management Co., which managed a total of $1.61 billion for the retirement system.

Long-duration bond managers TCW, which ran $524 million, and IR&M, with $511 million, were terminated for performance, according to the board meeting documents. Wellington, which ran $575 million in active international fixed income, was terminated for both performance and to move the assets to passive management.

Spokesmen at TCW and Wellington said their firms would not comment; officials at IR&M did not respond to a request for comment.

Assets from the TCW and IR&M mandates were moved to a $1.5 billion long-duration fixed income portfolio managed by Pacific Investment Management Co., and the Wellington assets were moved to a $1.1 billion State Street Global Advisors international bond portfolio, according to an INPRS spokeswoman. PIMCO and SSGA are existing managers for INPRS.

Also, the pension fund returned a net 7.98% for the 12 months ended June 30, the retirement system's fiscal year. The returns helped boosts the retirement system's total assets to $31.7 billion, up 5.6% from June 30, 2016.

The fiscal-year return was above the 6.48% custom benchmark return and the retirement system's 6.75% long-term rate of return.

The pension fund's investments returned a net 2.99% for three years and 5.65% for five years, both annualized and as of June 30, vs. the custom benchmark's 2.61% and 5.23%, respectively.

Global equity was the top performer for the 12 months ended June 30, at 21%; followed by private markets at 12.7%; real estate, 10.4%; and absolute return, 7.8%. In INPRS' remaining asset classes, cash and cash overlay returned 4.9%; risk parity, 4.6%, ex-inflation-linked fixed income, 1.9%; inflation-linked fixed income, -0.23%; and commodities, -6.7%. All returns are net of fees.

INPRS' asset allocation as of June 30 was 23.6% global equity, 20.1% ex-inflation-linked fixed income, 12.7% private markets; 11.1% risk parity; 9.6% absolute return; 7.9% commodities; 7.3% inflation-linked fixed income; 6.5% real estate; and 1.2% cash overlay.