Iowa Public Employees’ Retirement System, Des Moines, terminated Miller Anderson & Sherrerd, which managed $552.5 million in mortgage-backed securities for the $15.9 billion system, according to Kathy S. Comito, CIO. The system is restructuring its $6.7 billion fixed-income portfolio.
It also raised its core-plus fixed-income target allocation by about $810 million, based on recent valuations. It will add about $270 million each to the portfolios run by existing managers J.P. Morgan, BlackRock Financial and Western Asset, increasing each to about $1.4 billion.
The system lowered the target weighting of its Lehman Aggregate bond index fund, run by Mellon Capital, to 32% from 33% of total fixed income. The $80 million cut will leave the fund with $2.15 billion. It also sliced the target weighting of its high-yield bond portfolio, run by Oaktree Capital, to 6% from 7% of total fixed income. The portfolio was $422 million, which already was close to 6%. Further details were unavailable.
