Memphis Light, Gas & Water Division, Memphis, Tenn., hired Logan Circle Partners to run about $90 million in active emerging markets debt, Tamara Nolen, MLGW spokeswoman, said in an email.
The $1.5 billion pension fund's board approved consultant Gavion's recommendation at its June 21 meeting. Partial funding will come from redeeming its $73 million investment in an iShares emerging markets debt exchange-traded fund.
Another $17 million will come from the partial redemption of an active domestic fixed income portfolio managed by Weaver C Barksdale & Associates, leaving it with about $84 million.
The board in September 2015 terminated active emerging markets debt managers Pacific Investment Management Co. and TCW Group due to Gavion's recommendation to hire a single manager "that invests in both local currency and U.S. dollar-denominated debt," the minutes of that meeting said. However, when Gavion recommended hiring Logan Circle Partners at the time, the board instead elected to park the assets in the ETF, citing "apprehension about investments in emerging markets at this time," the minutes said.
The pension fund's target allocation to emerging markets debt is 6%.