Ohio Police & Fire Pension Fund, Columbus, will interview finalists Guggenheim, MacKay Shields, Wellington Management and PENN Capital Management to manage a $450 million portfolio of active domestic long-only high-yield fixed income, confirmed spokesman David Graham.
The $12.3 billion fund issued an RFP in April. At least one manager will be hired.
The search followed a change in the fund’s allocation adopted in February 2010 that increased its overall fixed-income allocation to 51.6% from 20%, including a seven-percentage-point rise in high yield to 15%, and cut equity to 43.4% from 58%.
Funding will come from the asset classes whose allocations are being lowered.
Interviews with the finalists and a decision on the hire are tentatively scheduled at the fund’s Sept. 27-28 board meeting.
The fund’s current high-yield managers are MacKay Shields, which manages $368 million; Neuberger Berman, $351 million; and Loomis Sayles, $324 million. None will be terminated.
Separately, the fund placed EARNEST Partners, which manages $432 million in active domestic midcap core equities, on watch for performance. The portfolio will be reviewed on a quarterly basis. EARNEST was hired in January 2006.
A phone call to Katie Driver, EARNEST spokeswoman, was not returned by press time.
