Iowa Public Employees' Retirement System, Des Moines, put two managers on watch.
Oaktree Capital Management was put on watch for underperformance on a U.S. high-yield bond strategy, in which IPERS has $369 million invested, said a summary of the June 22 Iowa board meeting.
Additionally, liquid absolute-return manager Berenberg Asset Management was put on watch due to key personnel turnover. The Berenberg strategy has a trading value of roughly $50 million, according to the board meeting summary.
The Oaktree strategy is a conservative high-yield strategy, said a source familiar with the strategy. Oaktree officials declined to comment on the watch status.
The board meeting summary also disclosed that IPERS staff will provide to the board information on internal management policies, best practices and challenges at the board's Sept. 20 continuing education meeting.
As part of a "long-range strategic initiative, (IPERS) is looking to develop an internal investment management capability in public markets strategies with the objective of creating another source of added value for the fund," said a spokeswoman in an email.
The $30.6 billion fund does not now manage any assets internally.