Updated with correction.
New Hampshire Retirement System, Concord, rebalanced its fixed-income portfolio to reduce risk and volatility, spokesman Marty Karlon said.
Within the $8.8 billion pension fund’s overall target of 25% to fixed income, the independent investment committee on Monday approved increasing the target to core fixed income to 9% of the total fund from 7% and decreasing the target to global multisector fixed income to 10% of the total fund from 11% and absolute return/unconstrained fixed income to 6% from 7%.
As a result of the changes, core fixed-income manager Income Research & Management’s portfolio will be increased to $772 million. As of March 31, the portfolio had $502 million in assets.
Absolute return/unconstrained fixed-income managers BlackRock and Manulife Asset Management’s portfolios will remain unchanged at $257 million and $219 million, respectively.
Global multisector fixed-income manager Fidelity Institutional Asset Management’s portfolio will be increased by $100 million to $358 million. The other global multisector fixed-income managers, Brandywine Global Investment Management and Loomis, Sayles & Co. will see their portfolios decreased by $90 million and $180 million, respectively, to $257 million and $261 million.
DoubleLine Capital, which ran $60 million in an absolute return/unconstrained fixed-income portfolio, was terminated. The other $40 million for FIAM comes from the continuing liquidation of a GAM fixed-income portfolio that was terminated last year.
Investment consultant NEPC assisted.
