Colorado Public Employees Retirement Association, Denver, outsourced $180 million in active domestic high-yield fixed income to Pareto Partners and Seix Investment Advisors; each firm will manage $90 million, said Katie Kaufmanis, director of communications. Officials for the $23.2 billion system wanted the plans internal managers to focus on other investment styles; over the next few years, they will increase the overall fixed-income allocation to 25%, from the current 14%, she said. Mercer Investment Consulting advised.
Separately, the system committed $15 million each to alternative investment funds Jefferson Partners IV and SunTX Fulcrum, and $15 million to the DRA Growth & Income Fund IV, a real estate fund, said Ms. Kaufmanis. Funding came from cash.
Alignment Capital Group assisted with the selection of the new alternative commitments; the firm manages the alternative investments in partnership with the plan. The system did not use a consultant for the real estate commitment.