Manchester (N.H.) Employees' Contributory Retirement System made hires and commitments totaling $18.5 million following an asset allocation review, said a news release emailed by Gerard E. Fleury, executive director.
The $200 million pension fund hired Vanguard Group to manage an $8.5 million Treasury inflation-protected securities portfolio, following the addition of a 4% TIPS target, and terminated Income Research & Management and Loomis Sayles & Co. from core fixed-income portfolios of $6 million and $2.5 million, respectively, as a result of the reduction of that target to 6% from 9%.
Also, the pension fund terminated EnTrustPermal from a hedge fund portfolio of about $10 million following the board's decision to eliminate the 5% target to hedge funds. The target previously had been reduced to 5% from 10% in early 2016.
The pension fund also committed $5 million each to CVI Credit Value Fund IV, a credit fund managed by CarVal Investors, and HarbourVest International Private Equity Partners VIII, managed by HarbourVest Partners, following an increase in the target to private markets to 10% from 6%.
Other targets, which remain unchanged, are: 16% domestic large-cap equities; 15% international equities; 10% each global asset allocation and real estate; 6% each diversified fixed income and domestic small/midcap equities; 5% each absolute-return fixed income, emerging markets equities and liquid alternatives; and 2% cash.
Investment consultant NEPC assisted.
