The $2.8 billion West Virginia State Board of Investments has called one of its bond managers - Duff & Phelps Investment Management Co., Chicago - on the carpet to explain its recent performance before deciding whether to continue using the firm.
H. Craig Slaughter, executive director, said the board passed a resolution asking Duff & Phelps to explain its -3.25% performance for the second quarter and its low range - 0.85% to 1.84% - for the year ended June 30.
Mr. Slaughter said Duff & Phelps was "well below" the median for both periods in the fixed income universe of Hewitt Associates. He said D&P was in the 20th to 26th percentile for the quarter and in the 5th to 13th percentile for the 12 months.
The Salomon Broad Investment Grade index returned -0.97% for the quarter. For the year it returned -1.18%, putting it in the 43rd percentile.
He said the board's resolution "expressed dissatisfaction," and the firm has been asked to appear at the August board meeting.
The firm manages $215 million in the state's pneumoconiosis (black lung) fund, $330 million in the Teachers' Retirement System and $281 million in the Workers' Compensation Fund.
Hewitt is the consultant.