Cook County Annuity & Benefit Fund, Chicago, hired Franklin Templeton Investments to manage $200 million in global fixed income.
The global fixed-income allocation is the first made by the $8.2 billion defined benefit pension fund, Nickol Hackett, executive director and chief investment officer, told the pension fund board at its meeting Thursday.
Funding came from the pension fund's core fixed-income and TIPS portfolios in a reclassification of its target 32% fixed-income allocation, which was approved by the board earlier Thursday. The reclassification was made to increase fixed-income diversification, Ms. Hackett said. No managers were terminated.
Standish Mellon Asset Management and Brandywine Global Investment Management were the other finalists.
The global bond portfolio makes up 9% of the fixed-income portfolio.
The pension fund issued an RFP on July 8. Callan Associates, the pension fund's investment consultant, assisted.