Dallas/Fort Worth International Airport plans to hire an additional non-core fixed-income manager this year to bring the portfolio closer to its 15% target, said Michael Phemister, vice president of treasury management.
No RFP will be issued. Interested firms may contact Mr. Phemister or the board's investment consultant, AndCo Consulting, for more information.
Separately, at its September meeting, the board committed $10 million to Golub Capital Partners 11, a senior lending fund, on behalf of its pension funds' non-core fixed-income portfolio, which has a current allocation of 11.1%.
The board also hired Garcia Hamilton & Associates to run an initial $26 million in core fixed income. Funding for Garcia Hamilton comes from the termination of Treasury inflation-protected securities managers Mutual of America and Barrow, Hanley, Mewhinney & Strauss, which ran a combined $30 million.
The remaining assets will be split evenly between another existing Barrow, Hanley fixed-income account and Smith Graham & Co. Investment Advisors, bringing their new allocations to about $26 million each.
The TIPS managers were hired in 2011 to hedge the fixed-income portfolio in the case of inflation. The pension funds now have other assets, such as real estate, that will serve as a hedge against rising interest rates, Mr. Phemister said.
The airport board oversees two pension funds with a combined $540 million in assets, plus two 401(a) plans and two 457 (b) plans with a combined $130 million in assets.
