Vermont Pension Investment Committee, Montpelier, placed Guggenheim Investments and Pinnacle Asset Management LP on watch, recently released committee minutes said.
The committee, which oversees the investment management of the $4 billion Vermont State Retirement Systems, placed high-yield fixed-income manager Guggenheim on watch following a request by Matt Considine, director of investments, to do so after a "conference call that staff held with Guggenheim Investments related to a recent article that alleged self-dealing by the firm," the minutes said. Guggenheim was hired in 2013 to manage $110 million in high-yield fixed income.
Scott Minerd, global chief investment officer of Guggenheim Partners and chairman of Guggenheim Investments, said in a statement, "We value our relationships with our clients and their consultants and understand the importance of transparent communication and an ongoing dialogue. As always, we are committed to addressing any questions they may have, and to resolving any concerns."
The committee also placed natural resources manager Pinnacle on watch "due to performance concerns," the minutes said. Pinnacle was originally hired in 2015 to manage $112 million. Pinnacle officials could not be immediately reached to provide comment.
Mr. Considine could not be immediately reached to provide further information.
