Oregon Investment Council, Salem, plans to revamp its $9.7 billion in fixed-income assets, including outsourcing $6.7 billion in internally managed bonds and possibly $2.4 billion in indexed bonds run by Barclays Global Investors. The overhaul, triggered by the upcoming retirement of internal bond chief William Unverzagt, affects domestic fixed-income portfolios managed on behalf of the $34 billion Oregon Public Employees Retirement Fund and the $2.4 billion State Accident Insurance Fund. Assets from about 10 other smaller entities managed by the Oregon treasury staff also are affected. In the first stage, the council plans to hire three or four bond managers early next year to manage roughly 30% some $2.5 billion of the pension funds $8.3 billion total bond exposure. It has not decided whether any of the insurance funds $1.4 billion in internally managed bond assets will be reallocated in the first round of changes. A second round of bond mandates is expected later in the year. Internal staff will work in concert with Frank Russell Co. to review managers, but no RFPs will be issued. In addition, the council will look at hiring an additional international equity manager sometime next year, replacing Nomura Asset Management USA, which was terminated in August as manager of a $380 million portfolio. The council also may consider hiring another large core U.S. equity manager next year.