SANTA FE, N.M. — New pension fund hires and an increasing emphasis on international equities have helped make core manager Thornburg Investment Management's institutional business its fastest-growing area, with assets under management up almost 50% since the end of September.
Thornburg managed $5.5 billion in institutional assets as of May 31 — $1.9 billion in international equities, $2.9 billion in U.S. equities and $700 million in fixed income. Combined, institutional assets make up nearly a third of Santa Fe, N.M.-based Thornburg's $14 billion in total assets under management. The firm serves about 30 institutional clients, with an average account size of $175 million. Thornburg has won 15 new mandates overall since September; all but one were for international equity.
Thornburg has not stepped up its marketing efforts, but a heightened interest in international equity strategies has served the firm well, said Peter Trevisani, partner and managing director for Thornburg's institutional group, "Some plan sponsors that weren't allocating anything to international are now (devoting) 10% to 15%," Mr. Trevisani said. "Some are allocating 20% to 25%."