The $694 million pension plan funded the hire by making reductions in the active international equity portfolios managed by Trilogy Global Advisors and Wellington Management, which were $103 million and $99 million, respectively, as of June 30. The specific amount of the reductions could not be learned by press time.
The pension fund also hired Crescent Capital Group to manage a $36 million bank loan portfolio and added an additional $24 million to a domestic core fixed-income portfolio managed by Commerce Bank, giving the manager a total of $105 million. Funding comes from the termination of Pacific Investment Management Co. from its $60 million domestic core fixed-income portfolio.
PIMCO was terminated because of “personnel changes and the resulting fallout,” Mr. Olish said. William H. Gross, PIMCO co-founder and chief investment officer, left the firm last September.
Separately, the pension fund hired Lazard Asset Management to run $41 million in active emerging markets equities; funding comes from the termination of J.P. Morgan Asset Management from a similar portfolio for performance. JPMAM spokeswoman Kristen Chambers did not return a phone call seeking comment by press time.
Also, the pension fund hired Kennedy Capital Management and Westfield Capital Management to run $21 million each in active domestic midcap equities, and IFM Investors and Ullico Investment Advisors to run $14 million each in infrastructure. Both are new allocations and will be funded from the pension fund's domestic large-cap equity portfolios. No managers will be terminated.
Investment consultant Marquette Associates assisted.