The decision was related to staff turnover and not performance, wrote Mr. Spencer. MacKay Shields runs $258 million in high-yield fixed income for the pension fund.
As of May 31, the pension fund's actual allocation to high-yield fixed income was 5.6% and its target, 6%.
Separately, the board renewed its contract with J.P. Morgan Chase for master custody and securities lending services for one additional fiscal year, expiring June 30, 2015.
Also, the pension plan returned 2% in May and 19.6% fiscal year-to-date.