Iowa Public Employees Retirement System, Des Moines, hired Western Asset Management, Smith Breeden Associates and Westridge Capital Management to run a total of $1.8 billion in enhanced cash portable alpha strategies for its $22 billion fund. Western Asset and Smith Breeden were assigned $700 million each, and Westridge, $400 million. The system seeks to port large-cap U.S. equity exposure through the use of equity derivatives onto an actively managed short-term bond or cash-equivalent investment strategy.
Most of the funding - $1.2 billion - will come from an S&P 500 index fund run by Mellon Capital Management, leaving it with $800 million. Also, $300 million each will be taken from an RCM Capital Management active domestic large-cap growth portfolio and a Wellington Management large-cap value portfolio, leaving both with about $700 million.
BGI was the transition manager. Wilshire Associates assisted with the changes.