Chicago Metropolitan Water Reclamation District Retirement Fund will liquidate a $108 million aggregate bond index portfolio managed by Northern Trust Global Investments, confirmed Susan Boutin, executive director of the $987 million retirement fund.
The money will be split between two active core-plus fixed-income managers hired in March, with Neuberger Berman and Pioneer Investments running about $79 million each.
The bond fund was liquidated because the board wanted to use only one passive fixed-income manager, Ms. Boutin said in a telephone interview. State Street Global Advisors, which managed $214 million as of Dec. 31, will remain as passive bond manager.
Separately, the board decided to transition a $45 million UBS Global Asset Management large-cap value portfolio to a core fund because the value portfolio had a limited number of clients and was not in compliance with the retirement fund's investment policy, Ms. Boutin said.
