New Jersey Division of Investment hired five money managers that will serve as advisers for internally managed high-yield fixed-income investments of the New Jersey Pension Fund, Trenton, said a notice posted on the division’s website.
Contracts were awarded to AllianceBernstein, Hotchkis & Wiley Capital Management, Nomura Corporate Research and Asset Management, Prudential Fixed Income and Wellington Management, according to the notice. The New Jersey Pension Fund had $1.83 billion allocated to public high-yield investments as of April 30.
The division, a unit of the state Treasury Department, manages investments for the $70.9 billion New Jersey Pension fund. The contracts run for three years with an optional extension of three years, Joseph Perone, a Treasury Department spokesman wrote in an e-mail.
The awarding of the high-yield contracts was based on an RFP issued March 31, 2014, the notice said.
When the division issued its RFP in 2014, it identified four incumbent advisers for the high-yield fixed-income portfolio — Logan Circle Partners, Nomura, Post Advisory Group and Pacific Investment Management Co.
“The evaluation took longer than anticipated,” Mr. Perone wrote. “The incumbents’ contracts were extended by mutual agreement.”
Each of the incumbents rebid, and the new contracts “were determined based upon a competitive process,” Mr. Perone added.
The 2014 RFP also said the division was seeking — for the first time — advisers for the internally managed municipal fixed-income portfolio. However, in its recently posted notice, the division said it decided against offering any contracts “at this time” for the municipal fixed-income portfolio.