Illinois Municipal Retirement Fund, Oak Brook, on March 28 hired three fixed-income managers to run a combined $500 million, subject to due diligence.
The $33.7 billion pension fund's board approved up to $200 million to Standish Mellon Asset Management to run in opportunistic emerging markets debt; up to $175 million to Babson Capital Management for a global loan portfolio, and up to $125 million to Crescent Capital Management to manage in high-income fixed income, according to an IMRF news release.
Also, $50 million was added to MacKay Shields' high-yield fixed-income portfolio. The size of the portfolio could not be learned by press time.
Funding comes from the termination of Pyramis Global Advisors, which ran $550 million in high-yield fixed income. Pyramis was dropped because the manager did not place at least 5% of its brokerage commissions with brokerages owned by minorities, women or those with disabilities, as required under IMRF policy. Pyramis spokesman Charles Keller said the manager does not comment on client relationships.
Pyramis continues to manage $784 million in active domestic small-cap growth equities for the pension fund.
Separately, $410 million was moved into two new Progress Investment Management allocations; $250 million in international equity and $160 million into fixed income.
The money came from terminating a $410 million active large-cap core equity mandate with Progress. The pension fund moved the assets to help reduce its overall domestic equity portfolio, which has a 38% target but a 45% actual allocation.
John Krupa, IMRF spokesman, could not be reached by press time for further comment.