Wyoming State Loan and Investment Board, Cheyenne, hired Logan Circle Partners to manage about $300 million in long-duration credit fixed income for the state's $1.9 billion Workers' Compensation Fund, confirmed Patrick Fleming, chief investment officer, in an email.
The board, which oversees $19.6 billion in state permanent fund assets, approved the hiring at its meeting on Thursday. The board earlier this year conducted a shortlist search following the creation in April 2017 of a new 27% target to long-duration credit fixed income in the Workers' Compensation Fund. Other finalists were Legal & General Investment Management America and Pacific Investment Management Co.
The long-duration target was funded by reducing intermediate fixed income to 33% from 48.5%, eliminating a 7% target to diversified hedge funds and other small reductions to asset classes. The specific funding source for this hiring will be decided in July or August, Mr. Fleming said.
Other current targets in the fund are 10% broad international equities; 9% broad domestic equities; 5% each local currency emerging markets debt and Treasury inflation-protected securities; 3% each bank loans, core real estate and master limited partnerships; and 1% each domestic small-cap equities and non-core real estate.
As of March 31, the actual allocation was 50.9% fixed income, 19.9% cash, 9.7% international equities, 9.3% domestic equities, 3.9% real estate, 3.3% absolute return and 3% convertible bonds.
The board also oversees the $7.4 billion Permanent Mineral Trust, $5.2 billion State Agency Pool of operating funds, $3.8 billion Common School Permanent Land Fund and five other permanent funds.
Investment consultant RVK assisted.