Indiana Public Employees' Retirement Fund, Indianapolis, changed a $109 million fixed-income portfolio managed by Hughes Capital Management to an active mandate benchmarked to the Lehman Brothers Aggregate bond index from the Lehman 1-3 year government credit index, said Jeff Hutson, director of communications for the $14.7 billion fund. The change was part of a restructuring of the fund's $3.5 billion fixed-income portfolio.
The Indiana fund also reaffirmed Hughes as a "manager in good standing," according to a fund report that said the firm made progress on organizational and other concerns expressed in August by the fund's staff and its consultant, Mercer Investment Consulting. The concerns included Hughes' ability to attract and retain investment professionals and clients, as well as its performance and client relations. Among the issues, Indiana PERF officials were concerned about Hughes' ability to manage different kind of portfolios with its small staff and that the Indiana fund was Hughes' largest client, representing 13% of the manager's assets. Frankie D. Hughes, Hughes president and CIO, could not be reached for comment by press time.