Searches and Hires

Austin City Employees hires 5 managers to run restructured fixed-income portfolio

Austin (Texas) City Employees' Retirement System hired five managers to run a total of $520 million in the $2.7 billion pension fund's restructured fixed-income portfolio.

During a meeting Tuesday, the board approved hiring Agincourt Capital Management to manage a total of $144 million in short- and long-duration U.S. Treasury bonds, said David T. Veal, chief investment officer, in an email.

Four new fixed-income managers also were approved with PGIM and Loomis Sayles & Co. receiving $109 million each for investment in U.S. investment-grade bonds.

DoubleLine Capital was allotted $107 million to invest in agency mortgage-backed securities, while Hoisington Investment Management received $51 million for investment in long-duration Treasury bills.

In December, the pension fund's board approved a new asset allocation that lowered the fund's fixed-income target, including cash funds, to 20% from 22.5% and broadened the fixed-income subasset classes in the portfolio beyond U.S. Treasuries.

Core U.S. bond portfolios managed by Agincourt and Northern Trust Asset Management of $396 million and $153 million, respectively, were terminated to free up assets for the new fixed-income subasset class allocation, Mr. Veal said.

Agincourt and Northern Trust were retained for management of existing cash-equivalent funds of $31 million and $4 million, respectively.