South Carolina Retirement Systems, Columbia, approved new contracts for five existing fixed-income managers that ran an aggregate $2.5 billion as of Jan. 31.
At its March 13 meeting, the South Carolina Retirement System Investment Commission, which directs investments for the $28.6 pension billion fund, approved new five-year contracts for core fixed-income managers Pacific Investment Management Co. and BlackRock, which each managed $1 billion; and Jamison, Eaton & Wood, which managed $209 million. Danny Varat, a spokesman for the commission, confirmed the rehires in an e-mail response to a request for information.
Also approved for new contracts were PENN Capital Management, which managed $100 million in an opportunistic high-yield strategy, and Post Advisory Group, which managed $165 million in high-yield securities.
Separately, the pension fund's consultant, Hewitt EnnisKnupp, told commissioners that the plan's funded status as of the fiscal year ended June 30 was 56% based on market valuation, and 63% based on actuarial valuation. By comparison, the plan's funded status was 55% and 65%, respectively, as of June 30, 2012, according to meeting materials.
HEK made its comments based on the results of an asset/liability study it prepared for the fund for the 2012-2013 fiscal year.
The pension fund outperformed its benchmark for all periods as of Dec. 31, returning 8.8% for the fiscal year-to-date against the benchmark return of 8%; one year, 11.6%, up 140 basis points on the benchmark; three years, 8.1%, compared to a 7% benchmark return; and five years, 11.9%, 210 basis points above the benchmark. Multiyear returns are annualized and were presented by the commission's investment staff.