Memphis Light, Gas & Water Division, Memphis, Tenn., decided not to hire any new emerging markets debt managers, said recently released board meeting minutes.
The $1.4 billion pension fund's board voted at its Oct. 21 meeting to keep $64 million parked in a BlackRock iShares emerging markets debt exchange-traded fund following the termination of Pacific Investment Management Co. and TCW Group, which ran that amount in active emerging markets debt strategies. The amounts of the individual portfolios could not be learned by press time.
The pension fund's investment consultant, Gavion, had recommended at the pension fund board's Sept. 16 meeting to hire a single emerging markets debt manager, Logan Circle Partners, “that invests in both local currency and U.S. dollar-denominated debt,” the minutes said. The board had voted to terminate the two existing managers as a result but could not come to an agreement at the time to hire Logan Circle Partners.
At the Oct. 21 meeting, the board ultimately decided not to hire any manager and to keep the assets in the ETF.
Spokeswoman Tamara Nolen was not available to provide further information by press time.