Phoenix City Employees' Retirement System hired Pacific Asset Management to run a $75 million bank loan portfolio, said Greg Fitchet, investment manager.
The $2.6 billion pension fund conducted a shortlist search for bank loan managers following the creation in March 2017 of a 3% bank loans target. THL Credit Advisors was the other finalist.
Funding comes from other asset classes that have been eliminated or reduced over the past year. Also in March 2017, the pension fund eliminated its 8% target to global tactical asset allocation strategies and dropped the targets to domestic equity to 16% from 18%, international developed markets equities to 9% from 16% and hedge funds to 5% from 15%.
The pension fund also named finalists in its search for an active emerging markets debt manager to run about $75 million. Logan Circle Partners, MFS Investment Management and Payden & Rygel will make presentations at the pension fund's April 5 board meeting. MFS is the incumbent manager.
Investment consultant Meketa Investment Group assists with all searches.
