Indiana Public Retirement System, Indianapolis, announced a commitment and an investment totaling $200 million to two alternative investment strategies from the system's $29.4 billion defined benefit plan.
Investment officers of the pension fund, who have investment discretion, informed trustees about the investment actions they took between board meetings, materials from the May 3 trustees' meeting showed.
Investment officers committed $100 million to Pathlight Capital Fund I, a private credit fund that will provide transitional capital in the form of asset-based loans to North American companies in consumer and retail industries. Pathlight Capital is a new manager for the pension fund.
INPRS invested $100 million in a new long/short, multiasset hedge fund strategy managed by existing manager Tilden Park Capital Management. The strategy's portfolio managers will invest in asset-backed markets through bottom-up security selection and opportunistic index hedging, the meeting report showed.
As of March 31, Tilden Park managed $230 million in a long/short credit portfolio in which INPRS has been invested since 2015.
Separately, four managers were added to INPRS' watchlist, the board report showed.
Three managers were added to the list for underperformance: Artisan Partners (APAM) for a $365 million active U.S. midcap value fund; Jackson Square Partners for a $128 million actively managed, concentrated, U.S. all-cap equity fund; and Stone Harbor Investment Partners for a $285 million actively managed emerging market debt fund.
In their watchlist report, INPRS' investment officers expressed confidence in each manager's investment approach despite current underperformance.
Mike Roos, a spokesman for Artisan Partners, and Victoria Odinotksa, a spokeswoman for Jackson Square Partners, did not immediately return calls seeking reaction to each firm's move to INPRS' watchlist.
Tess Rodriguez, a spokeswoman for Stone Harbor, declined to comment on INPRS' move in an email.
Emerging manager fund-of-funds specialist Leading Edge Investment Advisors was placed on the watchlist because several submanagers running part of INPRS' $180 million portfolio were terminated.
Clayton C. Jue, Ledge Edge's president and CEO, said the terminations were part of INPRS' decision to restructure the manager-of-managers mandate to reduce the amount of large-cap equity exposure.