Philadelphia Board of Pensions and Retirement is exiting opportunistic fixed income, terminating three managers and reducing the assets of another, said Christopher DiFusco, chief compliance officer, in an e-mail.
The $4.3 billion pension fund terminated Allianz Global Investors from a $111 million portfolio, Avenue Capital Group from a $97 million portfolio and Apollo Global Management from an $81 million portfolio, and reduced KKR & Co.’s portfolio by $99 million, leaving it with $64 million.
Assets are being reallocated to an existing portfolio managed by passive domestic core fixed-income manager RhumbLine Advisers, giving it $510 million. Mr. DiFusco said assets will be reallocated “when and if appropriate,” according to the pension fund’s asset allocation plan.
The terminations were due to performance issues, which Mr. DiFusco said were “both asset class and manager specific.”
“Once the liquidations have occurred, the board will have exited the space entirely, and there are no plans to return based upon the current asset allocation,” Mr. DiFusco added.
Megan Frank, vice president, corporate communications, at Allianz Global Investors could not be immediately reached to provide comment; Stefan Prelog, a spokesman for Apollo Global Management, and Kristi Huller, KKR spokeswoman, could not immediately provide further information. Todd Fogarty, spokesman for Avenue Capital Group, declined to comment.
