Arlington County (Va.) Employees’ Retirement System terminated Loomis Sayles & Co. from its $132 million global fixed-income portfolio and reduced the T. Rowe Price Group floating-rate fixed-income portfolio by $25 million, leaving it with about $75 million, said Daniel Zito, executive director and chief investment officer.
The $2.5 billion pension fund reallocated those assets to an existing passive domestic fixed-income portfolio managed by Northern Trust Asset Management, giving it about $500 million.
The reason for the changes was due to a recommendation by investment consultant Windmark Investment Partners to reduce its exposure to active fixed income because “the late economic and credit cycle dynamics coupled with tight spreads favors U.S. government debt and investment-grade credit over high yield and loans,” according to Feb. 6 board meeting minutes.
As of Dec. 31, the pension fund’s actual allocation to fixed income was 36%.
