North Dakota State Investment Board, Bismarck, hired Wells Capital Management to manage up to $300 million in core fixed income, said David Hunter, executive director and chief investment officer of the North Dakota Retirement and Investment Office.
Wells' Montgomery core fixed-income team will manage the strategy.
Funding will come from the elimination of two agency mortgage-backed securities strategies managed by Pacific Investment Management Co. and J.P. Morgan Asset Management (JPM), and two global fixed-income strategies managed by Brandywine Global Investment Management and UBS Asset Management. The MBS strategies totaled about $315 million and the global fixed-income strategies totaled about $260 million. The remaining assets will fund a $300 million domestic core bond account with PIMCO, which was awarded in August.
Investment consultant Callan Associates assisted with the searches.
The retirement and investment office oversees the $12.5 billion investment board, which includes pension fund and insurance assets. As of June 30, the $5.3 billion pension trust had a domestic fixed-income target of 17.8%.