Minnesota State Board of Investments, St. Paul, today terminated...

Minnesota State Board of Investments, St. Paul, today terminated Investment Advisers Inc. as a fixed-income manager because of poor performance and concerns over the board’s account making up more than 60% of the total $1 billion in fixed income managed by the firm. IAI manages $658 million in active core bond strategies for the $38 billion retirement fund. ‘‘Though IAI is disappointed with the board’s decision in light of its benchmark-matching performance since inception, we respect and understand the board’s decision,’’ said Steve Lentz, spokesman for IAI. The IAI allocation will be distributed among three new active core bond managers being hired because of a rebalancing of equities. Hired were Deutsche Asset Management, Dodge & Cox and Metropolitan West Asset. Also, four managers were hired as part of the board’s move to increase active international stock management. It changed the international equity allocation in September, allowing an investment of up to 67% in either active or passive strategies, from 50%. Hired were: American Express, $300 million; Blairlogie, $100 million; INVESCO, $400 million; and Montgomery Asset, $300 million. Funding will come from a reduction in the $3.2 billion in international equity passively managed by SSgA. The board also selected Norwest to provide record keeping, communications, seven mutual funds and a mutual fund window for the Minnesota State Colleges and Universities’ 401(a) plan. The plan’s assets were not disclosed. TIAA-CREF was hired to manage additional investment options, beginning in June. Information about the plan’s current service providers was not available.