State of Wisconsin Investment Board, Madison, dropped a $374 million BlackRock fixed-income portfolio, moving the proceeds to cash, according to Vicki Hearing, public information officer for the $78.6 billion board.
In addition, SWIB reduced by $250 million a T. Rowe Price active emerging markets equity portfolio, which now will total $915 million. The $250 million were added to a BlackRock emerging markets index fund, raising it to $842 million.
The BlackRock fixed-income portfolio, known as “credit beta,” included investments in investment-grade credit, AAA-rated commercial mortgage-backed securities and high yield. “In addition, the portfolio combines an overlay that replicates SWIB's $73.5 billion core trust fund diversified asset allocation through futures and securities, Ms. Hearing said in an e-mail.
She said SWIB officials wouldn't comment on why the changes were made.
No consultant was used.