Illinois State Board of Investment, Chicago, hired Brigade Capital Management to run $200 million in high-yield fixed income.
Funding came from reducing the portfolio of the board’s previous lone high-yield fixed-income manager, Fort Washington Investment Advisors, to $200 million, said William R. Atwood, the board’s executive director and chief investment officer.
The board wanted an additional high-yield manager, Mr. Atwood said. High yield is part of the board’s 28.6% fixed-income allocation.
Beach Point Capital Management was the other finalist, Mr. Atwood said. Consultant Meketa Investment Group assisted.
The board manages $16 billion for the Illinois State Employees’ Retirement System, Illinois General Assembly Retirement System and Illinois Judges’ Retirement System.