Ohio Bureau of Workers' Compensation, Columbus, hired Northern Trust Asset Management to run about $915 million in a passive, intermediate-duration U.S. Treasury portfolio, said Melissa Vince, spokeswoman, in an email.
The board of the bureau, which oversees $26.6 billion in insurance funds, issued an RFP in August after approving a new target allocation for the $24.5 billion State Insurance Fund in May.
That allocation included a new 4% target to passive domestic intermediate-term fixed income, replacing the 4% target to passive domestic long-duration bonds.
On May 30, the bureau terminated BlackRock (BLK)'s $897 million passive long-duration fixed-income portfolio and moved the assets to cash. BlackRock was one of eight managers that bid for the new portfolio. There were no finalist presentations.
Separately, the board approved the renewal for three years of three international equity portfolios BlackRock now runs: $2.7 billion for the State Insurance Fund, $195 million for the $1.7 billion Disabled Workers' Relief Fund and $30 million for the $363 million Coal Workers' Pneumoconiosis Fund. The contracts now run through Dec. 31, 2021. No RFP was issued.
Investment consultant RVK assisted.