Iowa Public Employees' Retirement System, Des Moines, hired PGIM to manage $385 million in a U.S. high-yield fixed-income strategy, confirmed Judy Akre, spokeswoman for the $31.4 billion plan.
Funding will come from terminating Oaktree Capital, which has been on watch for performance issues. An Oaktree spokeswoman declined to comment.
Also, Principal Global Investors, which runs $1.3 billion in a core-plus fixed-income strategy for IPERS, was flagged for performance concerns, along with Graham Capital Management in its $75 million tactical trend-following mandate. Jane Slusark, a spokeswoman from Principal, could not be immediately reached. Graham Capital spokesman Steve Bruce declined to comment.
The decisions were announced at the board's March 22 meeting.