updated with correction
The $31 billion defined benefit plan of Indiana Public Retirement System, Indianapolis, restructured two fixed-income portfolios totaling nearly $3 billion and named PIMCO to run both. The fund also invested or committed a total of $775 million to five alternative investment strategies.
Fund officials, who have investment discretion, informed trustees during an Oct. 25 board meeting that they restructured the plan’s actively managed long government and long credit fixed-income portfolios, which totaled $2.98 billion.
The new structure created a passively managed long-government bond strategy with an unconstrained overlay and an actively managed long-credit portfolio, both managed by Pacific Investment Management Co., spokesman Jeffrey Hutson confirmed in an email.
PIMCO managed most of the assets in the original portfolios and Reams Asset Management ran the balance, Mr. Huston said; he did not provide a breakdown of how much each firm managed.
Reams was terminated “because the change in IPRS’ portfolio structure fell outside of Reams’ capabilities,” investment officers said in the board report.
INPRS’ trustees also learned about commitments totaling $575 million to three new alternative investment managers, the largest of which was a commitment totaling $400 million to three different strategies run by Intermediate Capital Group. INPRS committed $100 million each to two separate accounts that will “invest alongside” ICG’s debt fund and sale and lease back funds, and $200 million was committed to the firm’s revolving credit facilities fund, according to the board report.
The fund also invested $100 million in Whitebox Advisors’ Whitebox Relative Value Fund Partners hedge fund, while Prologis Private Capital received a $75 million investment to its open-end real estate fund Prologis Targeted U.S. Logistics Fund, which invests in U.S. core and industrial properties.
In private equity, existing INPRS manager Veritas Capital Management received a $100 million commitment to Veritas Capital Fund VII, a U.S.-based buyout fund which focuses investment in companies providing services to government entities.
INPRS also committed $100 million to existing manager KKR for investment in a private credit strategy. The name of the fund could not be learned.
INPRS’ investment staff moved $2 million that remained from its investment in Accel-KKR Capital Partners III into Accel-KKR Capital Partners CV III, a new vehicle that includes four portfolio companies that were the remaining assets of the earlier fund, the board report showed.
As of Sept. 30, INPRS managed a total of $37 billion, including the $31 billion defined benefit plan as well as $5.6 billion in the state’s defined contribution plan and $375 million in other state funds.
