Merced County (Calif.) Employees' Retirement Association hired GoldenTree Asset Management and Pacific Investment Management Co. to run about $21 million each in opportunistic fixed-income portfolios, said Kristen Santos, retirement plan administrator, in an email.
The $828 million pension fund conducted a shortlist search for opportunistic managers to complement Barrow, Hanley, Mewhinney & Strauss, which runs $133 million in active domestic core fixed income. Vanguard Group is the pension fund's other fixed-income manager, running $37 million in a passive U.S. Treasuries portfolio.
GoldenTree runs an opportunistic credit strategy, while PIMCO runs an opportunistic multisector strategy. Funding will come from reductions in domestic equity and fixed-income portfolios, Ms. Santos said.
The pension fund also approved a recommendation to reduce Barrow Hanley's portfolio by 50% to about $66 million and hire Vanguard Group to run its Total Bond Market Index Fund in order to reduce overall fees in the fixed-income portfolio.
As of Feb. 28, the actual allocation to domestic fixed income was 20.8%.
Investment consultant Meketa Investment Group assisted.
Also, the pension fund committed $8 million to buyout fund Accel-KKR Capital Partners VI. The pension fund previously committed $5 million to mezzanine debt fund Accel-KKR Growth Capital Partners III in June 2018.
As of Feb. 28, the actual allocation to private equity was 4.7%.
Private equity and hedge fund consultant Cliffwater assisted.