North Dakota State Investment Board, Bismarck, hired Strong Capital Management to run a $115 million, BBB-average quality corporate bond portfolio, a new asset class for the $3 billion fund, said Steve Cochrane, investment director.
Funding comes from terminating Sanford C. Bernstein, which managed a similar amount in core domestic fixed income, he said.
``We wanted to increase the diversification and improve the return/risk characteristics of our fixed-income portfolio,'' Mr. Cochrane said.
Next year, the system will invest another $25 million in private equity with Brinson Partners, which currently runs $25 million for the system, Mr. Cochrane said. Funding for that investment will come from cutbacks across the board, he said.