Indiana Public Retirement System, Indianapolis, hired State Street Global Advisors to manage $543 million in international fixed income.
SSgA replaces Northern Trust Asset Management, which ran the assets in a similar strategy. SSgA was selected "due to its competitive fee structure and fit based on the system's overall asset allocation and objectives," said Jeff Hutson, spokesman. No RFP was issued. INPRS has a pre-approved list of passive equity managers from which firms are selected on an as-needed basis, he said.
Also, the $29.1 billion pension system made private equity commitments of $75 million to Vista Equity Partners Fund VI, a buyout fund that focuses on midmarket and large-cap software and technology firms; $50 million to Warwick Partners Fund III, an oil and gas portfolio managed by Warwick Energy Group; and $20 million to Crestview W1 Co-Investors, a fund managed by Crestview Partners that invests in cable, phone and Internet provider Wideopenwest.
Separately, INPRS' investments returned 2.17% in its third quarter, vs. its 2.36% custom benchmark, according to a report to the pension fund's board. For other periods ended March 31, the portfolio returned -1.71% for 12 months, compared to the -1.47% benchmark; and an annualized 2.69% for three years, vs. 2.57%.
For the latest quarter, ex-inflation-linked fixed income had the highest return, at 5.06%, and absolute return had the lowest return, at -2.22%.
Among other asset classes for the quarter ended March 31, global public equity returned 0.29%; private equity, 1.63%; inflation-linked fixed income, 4.1%; commodities, 0.23%; real estate, 2.22%; risk parity, 4.47%; and cash, 0.65%.
The pension fund's asset allocation as of March 31 was 22.1% global equity, 21.1% ex-inflation-linked fixed income, 13.7% private equity, 10.7% risk parity, 9.5% absolute return, 7.9% inflation-linked fixed income, 6.6% commodities, 6.5% real estate, and the remainder in cash.