Searches and Hires

Rhode Island picks Loomis Sayles for liquid credit, drops 2 managers

Rhode Island State Investment Commission, Providence, hired Loomis, Sayles & Co. to manage about $170 million in a liquid credit strategy, said Evan England, spokesman for state Treasurer Seth Magaziner, who oversees the commission.

Loomis Sayles will manage half the entire liquid credit allocation and invest in high-yield bonds and bank loans. Funding will come from terminating Western Asset Management Co., which currently runs the allocation. Western Asset was terminated for performance, Mr. England confirmed. Western spokeswoman Mary K. Athridge declined to comment.

In addition, the investment commission decided at its Wednesday meeting to redeem its position in a PGIM Real Estate open-end core real estate fund, which was valued at $77 million as of March 30. The redemption is being made because the portfolio is currently overweight to real estate. Proceeds will be redistributed throughout the pension fund's overall portfolio. PGIM spokesman Brendan Duffy declined to comment.

The investment commission manages the assets of the $8.4 billion Rhode Island Employees' Retirement System, Providence. As of Aug. 31, the actual allocations to real estate and liquid credit were 5.1% and 4.3%, respectively.