Vermont Pension Investment Committee, Montpelier, hired State Street Global Advisors to run $40 million in a passive domestic core fixed-income strategy for the $4 billion Vermont State Retirement Systems, said Stephen Rauh, chairman of the investment committee, in an e-mail.
Funding comes from an active domestic core-plus fixed-income portfolio managed by Pacific Investment Management Co., leaving that portfolio with a total of $220 million.
Separately, the committee at a special Nov. 24 meeting interviewed PIMCO, GAM USA and Loomis Sayles regarding their unconstrained fixed-income offerings following an invitation-only search to potentially replace PIMCO, which currently manages $260 million in its unconstrained strategy.
A decision is expected at the Dec. 22 committee meeting.
The SSgA hire and the interviews were both the result of efforts to further examine and diversify the committee's fixed-income allocation following the departure of William H. Gross, co-founder and chief investment officer, on Sept. 26.
The committee also terminated T. Rowe Price Group, which ran $120 million in its structured research equity strategy. Mr. Rauh did not give a reason for the termination. Funds were moved to an existing passive domestic large-cap core equity portfolio managed by SSgA, giving it $308 million.
Investment consultant NEPC assisted.
