University of Wisconsin System, Madison, selected semifinalists to run a combined $135 million in active domestic fixed income for its $350 million endowment's $290 million long-term investment fund and $60 million intermediate-term fund, said Douglas Hoerr, treasury manager and assistant trust officer.
For $60 million in U.S. investment-grade bonds for the long-term fund, the candidates are Barclays Global, BlackRock, PIMCO and incumbents Bradford & Marzec and Standish Mellon. For $60 million in a similar portfolio for the intermediate-term fund, the firms are BlackRock, Bradford & Marzec, PIMCO, Dimensional Fund Advisors and incumbent Reams. For $15 million in U.S. high yield for the long-term fund, candidates are Financial Management Advisors, Fountain Capital, GoldenTree, M.W. Post, Seix Investment and W.R. Huff.
Incumbents' contracts expire Nov. 1, Mr. Hoerr said, and the state's procurement agency required a search.
The high-yield portfolio is new; funding likely will come from reducing current active domestic core bond portfolios run by Standish Mellon and Bradford & Marzec, worth a combined $60 million, he said.
Officials "in the very near future" will pick three finalists in each category, he said. Interviews are tentatively scheduled for July.