The council, which oversees $22 billion in assets, approved the hire at its March 26 meeting based on the recommendations of staff and investment consultant Aon Hewitt Investment Consulting, to provide further diversification in the overall fixed-income portfolio.
Funding comes from reducing the allocations of the three current core-plus managers. Pacific Investment Management Co.'s portfolio was reduced by $400 million, bringing it to $670 million; BlackRock's portfolio by $200 million, to $700 million; and Loomis Sayles' portfolio, by $25 million to $210 million.
Separately, the council committed $40 million to Torchlight Debt Opportunity Fund V, a real estate debt fund managed by Torchlight Investors. The council previously committed $20 million to Torchlight Debt Opportunity Fund IV in August 2013.